S.Amdt. 3078

TEXT OF AMENDMENTS

SA 3052. Mrs. FEINSTEIN submitted an amendment intended to be
proposed to amendment SA 3048 proposed by Mr. McCain to the bill S.
150, to make permanent the moratorium on taxes on Internet access and
multiple and discriminatory taxes on electronic commerce imposed by the
Internet Tax Freedom Act; which was ordered to lie on the table; as
follows:

On page 5, line 2, strike ``2006.'' and insert ``2007.''.
On page 5, line 20, strike ``2005.'' and insert ``2007.''.
______

SA 3053. Mr. ROCKEFELLER submitted an amendment intended to be
proposed to amendment SA 3048 proposed by Mr. McCain to the bill S.
150, to make permanent the moratorium on taxes on Internet access and
multiple and discriminatory taxes on electronic commerce imposed by the
Internet Tax Freedom Act; which was ordered to lie on the table; as
follows:

At the appropriate place, insert the following:

SEC.   . BROADBAND INTERNET ACCESS TAX CREDIT.

(a) In General.--Subpart E of part IV of chapter 1 of the
Internal Revenue Code of 1986 (relating to rules for
computing investment credit) is amended by inserting after
section 48 the following:

``SEC. 48A. BROADBAND INTERNET ACCESS CREDIT.

``(a) General Rule.--For purposes of section 46, the
broadband credit for any taxable year is the sum of--
``(1) the current generation broadband credit, plus
``(2) the next generation broadband credit.
``(b) Current Generation Broadband Credit; Next Generation
Broadband Credit.--For purposes of this section--
``(1) Current Generation Broadband Credit.--The current
generation broadband credit for any taxable year is equal to
10 percent of the qualified expenditures incurred with
respect to qualified equipment providing current generation
broadband services to qualified subscribers and taken into
account with respect to such taxable year.
``(2) Next generation broadband credit.--The next
generation broadband credit for any taxable year is equal to
20 percent of the qualified expenditures incurred with
respect to qualified equipment providing next generation
broadband services to qualified subscribers and taken into
account with respect to such taxable year.
``(c) When Expenditures Taken Into Account.--For purposes
of this section--
``(1) In general.--Qualified expenditures with respect to
qualified equipment shall be taken into account with respect
to the first taxable year in which--
``(A) current generation broadband services are provided
through such equipment to qualified subscribers, or
``(B) next generation broadband services are provided
through such equipment to qualified subscribers.
``(2) Limitation.--
``(A) In general.--Qualified expenditures shall be taken
into account under paragraph (1) only with respect to
qualified equipment--
``(i) the original use of which commences with the
taxpayer, and
``(ii) which is placed in service, after December 31, 2003.
``(B) Sale-leasebacks.--For purposes of subparagraph (A),
if property--
``(i) is originally placed in service after December 31,
2003, by any person, and
``(ii) sold and leased back by such person within 3 months
after the date such property was originally placed in
service, such property shall be treated as originally placed
in service not earlier than the date on which such property
is used under the leaseback referred to in clause (ii).
``(d) Special Allocation Rules.--
``(1) Current generation broadband services.--For purposes
of determining the current generation broadband credit under
subsection (a)(1) with respect to qualified equipment through
which current generation broadband services are provided, if
the qualified equipment is capable of serving both qualified
subscribers and other subscribers, the qualified expenditures
shall be multiplied by a fraction--
``(A) the numerator of which is the sum of the number of
potential qualified subscribers within the rural areas and
the underserved areas which the equipment is capable of
serving with current generation broadband services, and
``(B) the denominator of which is the total potential
subscriber population of the area which the equipment is
capable of serving with current generation broadband
services.
``(2) Next generation broadband services.--For purposes of
determining the next generation broadband credit under
subsection (a)(2) with respect to qualified equipment through
which next generation broadband services are provided, if the
qualified equipment is capable of serving both qualified
subscribers and other subscribers, the qualified expenditures
shall be multiplied by a fraction--
``(A) the numerator of which is the sum of--
``(i) the number of potential qualified subscribers within
the rural areas and underserved areas, plus
``(ii) the number of potential qualified subscribers within
the area consisting only of residential subscribers not
described in clause (i),

which the equipment is capable of serving with next
generation broadband services, and
``(B) the denominator of which is the total potential
subscriber population of the area which the equipment is
capable of serving with next generation broadband services.
``(e) Definitions.--For purposes of this section--
``(1) Antenna.--The term `antenna' means any device used to
transmit or receive signals through the electromagnetic
spectrum, including satellite equipment.
``(2) Cable operator.--The term `cable operator' has the
meaning given such term by section 602(5) of the
Communications Act of 1934 (47 U.S.C. 522(5)).
``(3) Commercial mobile service carrier.--The term
`commercial mobile service carrier' means any person
authorized to provide commercial mobile radio service as
defined in section 20.3 of title 47, Code of Federal
Regulations.
``(4) Current generation broadband service.--The term
`current generation broadband service' means the transmission
of signals at a rate of at least 1,000,000 bits per second to
the subscriber and at least 128,000 bits per second from the
subscriber.
``(5) Multiplexing or demultiplexing.--The term
`multiplexing' means the transmission of 2 or more signals
over a single channel, and the term `demultiplexing' means
the separation of 2 or more signals previously combined by
compatible multiplexing equipment.
``(6) Next generation broadband service.--The term `next
generation broadband service' means the transmission of
signals at a rate of at least 22,000,000 bits per second to
the subscriber (or its equivalent when the data rate is
measured before being compressed for transmission) and at
least 5,000,000 bits per second from the subscriber (or its
equivalent as so measured).
``(7) Nonresidential subscriber.--The term `nonresidential
subscriber' means any

[[Page S4606]]

person who purchases broadband services which are delivered
to the permanent place of business of such person.
``(8) Open video system operator.--The term `open video
system operator' means any person authorized to provide
service under section 653 of the Communications Act of 1934
(47 U.S.C. 573).
``(9) Other wireless carrier.--The term `other wireless
carrier' means any person (other than a telecommunications
carrier, commercial mobile service carrier, cable operator,
open video system operator, or satellite carrier) providing
current generation broadband services or next generation
broadband service to subscribers through the wireless
transmission of energy through radio or light waves.
``(10) Packet switching.--The term `packet switching' means
controlling or routing the path of a digitized transmission
signal which is assembled into packets or cells.
``(11) Provider.--The term `provider' means, with respect
to any qualified equipment any--
``(A) cable operator,
``(B) commercial mobile service carrier,
``(C) open video system operator,
``(D) satellite carrier,
``(E) telecommunications carrier, or
``(F) other wireless carrier,

providing current generation broadband services or next
generation broadband services to subscribers through such
qualified equipment.
``(12) Provision of services.--A provider shall be treated
as providing services to 1 or more subscribers if--
``(A) such a subscriber has been passed by the provider's
equipment and can be connected to such equipment for a
standard connection fee,
``(B) the provider is physically able to deliver current
generation broadband services or next generation broadband
services, as applicable, to such a subscriber without making
more than an insignificant investment with respect to such
subscriber,
``(C) the provider has made reasonable efforts to make such
subscribers aware of the availability of such services,
``(D) such services have been purchased by 1 or more such
subscribers, and
``(E) such services are made available to such subscribers
at average prices comparable to those at which the provider
makes available similar services in any areas in which the
provider makes available such services.
``(13) Qualified equipment.--
``(A) In general.--The term `qualified equipment' means
equipment which provides current generation broadband
services or next generation broadband services--
``(i) at least a majority of the time during periods of
maximum demand to each subscriber who is utilizing such
services, and
``(ii) in a manner substantially the same as such services
are provided by the provider to subscribers through
equipment with respect to which no credit is allowed under
subsection (a)(1).
``(B) Only certain investment taken into account.--Except
as provided in subparagraph (C) or (D), equipment shall be
taken into account under subparagraph (A) only to the extent
it--
``(i) extends from the last point of switching to the
outside of the unit, building, dwelling, or office owned or
leased by a subscriber in the case of a telecommunications
carrier,
``(ii) extends from the customer side of the mobile
telephone switching office to a transmission/receive antenna
(including such antenna) owned or leased by a subscriber in
the case of a commercial mobile service carrier,
``(iii) extends from the customer side of the headend to
the outside of the unit, building, dwelling, or office owned
or leased by a subscriber in the case of a cable operator or
open video system operator, or
``(iv) extends from a transmission/receive antenna
(including such antenna) which transmits and receives signals
to or from multiple subscribers, to a transmission/receive
antenna (including such antenna) on the outside of the unit,
building, dwelling, or office owned or leased by a subscriber
in the case of a satellite carrier or other wireless carrier,
unless such other wireless carrier is also a
telecommunications carrier.
``(C) Packet switching equipment.--Packet switching
equipment, regardless of location, shall be taken into
account under subparagraph (A) only if it is deployed in
connection with equipment described in subparagraph (B) and
is uniquely designed to perform the function of packet
switching for current generation broadband services or next
generation broadband services, but only if such packet
switching is the last in a series of such functions performed
in the transmission of a signal to a subscriber or the first
in a series of such functions performed in the transmission
of a signal from a subscriber.
``(D) Multiplexing and demultiplexing equipment.--
Multiplexing and demultiplexing equipment shall be taken into
account under subparagraph (A) only to the extent it is
deployed in connection with equipment described in
subparagraph (B) and is uniquely designed to perform the
function of multiplexing and demultiplexing packets or cells
of data and making associated application adaptions, but only
if such multiplexing or demultiplexing equipment is located
between packet switching equipment described in subparagraph
(C) and the subscriber's premises.
``(14) Qualified expenditure.--
``(A) In general.--The term `qualified expenditure' means
any amount--
``(i) chargeable to capital account with respect to the
purchase and installation of qualified equipment (including
any upgrades thereto) for which depreciation is allowable
under section 168, and
``(ii) incurred after December 31, 2003, and before January
1, 2008.
``(B) Certain satellite expenditures excluded.--Such term
shall not include any expenditure with respect to the
launching of any satellite equipment.
``(C) Leased equipment.--Such term shall include so much of
the purchase price paid by the lessor of equipment subject to
a lease described in subsection (c)(2)(B) as is attributable
to expenditures incurred by the lessee which would otherwise
be described in subparagraph (A).
``(15) Qualified subscriber.--The term `qualified
subscriber' means--
``(A) with respect to the provision of current generation
broadband services--
``(i) any nonresidential subscriber maintaining a permanent
place of business in a rural area, or underserved area, or
``(ii) any residential subscriber residing in a dwelling
located in a rural area or underserved area which is not a
saturated market, and
``(B) with respect to the provision of next generation
broadband services--
``(i) any nonresidential subscriber maintaining a permanent
place of business in a rural area, or underserved area, or
``(ii) any residential subscriber.
``(16) Residential subscriber.--The term `residential
subscriber' means any individual who purchases broadband
services which are delivered to such individual's dwelling.
``(17) Rural area.--The term `rural area' means any census
tract which--
``(A) is not within 10 miles of any incorporated or census
designated place containing more than 25,000 people, and
``(B) is not within a county or county equivalent which has
an overall population density of more than 500 people per
square mile of land.
``(18) Rural subscriber.--The term `rural subscriber' means
any residential subscriber residing in a dwelling located in
a rural area or nonresidential subscriber maintaining a
permanent place of business located in a rural area.
``(19) Satellite carrier.--The terns `satellite carrier'
means any person using the facilities of a satellite or
satellite service licensed by the Federal Communications
Commission and operating in the Fixed-Satellite Service under
part 25 of title 47 of the Code of Federal Regulations or the
Direct Broadcast Satellite Service under part 100 of title 47
of such Code to establish and operate a channel of
communications for distribution of signals, and owning or
leasing a capacity or service on a satellite in order to
provide such distribution.
``(20) Saturated market.--The term `saturated market' means
any census tract in which; as of the date of the enactment of
this section--
``(A) current generation broadband services have been
provided by a, single provider to 85 percent or more of the
total number of potential residential subscribers residing in
dwellings located within such census tract, and
``(B) such services can be utilized--
``(i) at least a majority of the time during periods of
maximum demand by each such subscriber who is utilizing such
services, and
``(ii) in a manner substantially the same as such services
are provided by the provider to subscribers through equipment
with respect to which no credit is allowed under subsection
(a)(1).
``(21) Subscriber.--The term `subscriber' means any person
who purchases current generation broadband services or next
generation broadband services.
``(22) Telecommunications carrier.--The term
`telecommunications carrier' has the meaning given such term
by section 3(44) of the Communications Act of 1934 (47 U.S.C.
153(44)), but--
``(A) includes all members of an affiliated group of which
a telecommunications carrier is a member, and
``(B) does not include any commercial mobile service
carrier.
``(23) Total potential subscriber population.--The term
`total potential subscriber population' means, with respect
to any area and based on the most recent census data, the
total number of potential residential subscribers residing in
dwellings located in such area and potential nonresidential
subscribers maintaining permanent places of business located
in such area.
``(24) Underserved area.--The term `underserved area,'
means any census tract which is located in--
``(A) an empowerment zone or enterprise community
designated under section 1391,
``(B) the District of Columbia. Enterprise Zone established
under section 1400,
``(C) a renewal community designated under section 1400E,
or
``(D) a low-income community designated under section 45D.
``(25) Underserved subscriber.-- The term `underserved
subscriber' means any residential subscriber residing in a
dwelling located in an underserved area or nonresidential
subscriber maintaining a permanent place of business located
in an underserved area.''.
(b) Credit To Be Part of Investment Credit.--Section 46 of
the Internal Revenue Code of 1986 (relating to the amount of
investment credit) is amended by striking

[[Page S4607]]

``and'' at the end of paragraph (2), by striking the period
at the end of paragraph (3) and inserting ``, and'', and by
adding at the end the following:
``(4) the broadband Internet access credit.''
(c) Special Rule for Mutual or Cooperative Telephone
Companies.--Section 501(c)(12)(B) of the Internal Revenue
Code of 1986 (relating to list of exempt organizations) is
amended by striking ``or'' at the end of clause (iii), by
striking the period at the end of clause (iv) and inserting
``, or'', and by adding at the end the following new
clause:
``(v) from the sale of property subject to a lease
described in section 48A(c)(2)(B), but only to the extent
such income does not in any year exceed amount equal to the
credit for qualified expenditures which would be determined
under section 48A for such year if the mutual or cooperative
telephone company was not exempt from taxation and was
treated as the owner of the property subject to such
lease.''.
(d) Conforming Amendment.--The table of sections for
subpart E of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 is amended by inserting after
the item relating to section 48 the following:

``Sec. 48A. Broadband internet access credit.''.

(e) Designation of Census Tracts.--
(1) In general.--The Secretary of the Treasury shall, not
later than 90 days after the date of the enactment of this
Act, designate and publish those census tracts meeting the
criteria described in paragraphs (17) and (24) of section
48A(e) of the Internal Revenue Code of 1986 (as added by this
section). In making such designations, the Secretary of the
Treasury shall consult with such other departments and
agencies as the Secretary determines appropriate.
(2) Saturated market.--
(A) In general.--For purposes of designating and publishing
those census tracts meeting the criteria described in
subsection (e)(20) of such section 48A--
(i) the Secretary of the Treasury shall prescribe not later
than 30 days after the date of the enactment of this Act the
form upon which any provider which takes the position that it
meets such criteria with respect to any census tract shall
submit a list of such census tracts (and any other
information required by the Secretary) not later, than 60
days after the date of the publication of such form, and
(ii) the Secretary of the Treasury shall publish an
aggregate list of such census tracts submitted and the
applicable providers not later than 30 days after the last
date such submissions are allowed under clause (i).
(B) No subsequent lists required.--The Secretary of the
Treasury shall not be required to publish any list of census
tracts meeting such criteria subsequent to the list described
in subparagraph (A)(ii).
(C) Authority to disregard false submissions.--In addition
to imposing any other applicable penalties, the Secretary of
the Treasury shall have the discretion to disregard any form
described in subparagraph (A)(i) on which a provider
knowingly submitted false information.
(f) Other Regulatory Matters.--
(1) Prohibition.--No Federal or State agency or,
instrumentality shall adopt regulations or rate making
procedures that would have the effect of confiscating any
credit or portion thereof allowed under section 48A of the
Internal Revenue Code of 1986 (as added by this section) or
otherwise subverting the purpose of this section.
(2) Treasury regulatory authority.--It is the intent of
Congress in providing the broadband Internet access credit
under section 48A of the Internal Revenue Code of 1986 (as
added by this section) to provide incentives for the
purchase, installation, and connection of equipment and
facilities offering expanded broadband access to the Internet
for users in certain low income and rural areas of the United
States, as well as to residential users nationwide, in a
manner that maintains competitive neutrality among the
various classes of providers of broadband services.
Accordingly, the Secretary of the Treasury shall prescribe
such regulations as may be necessary or appropriate to carry
out the purposes of section 48A of such Code, including--
(A) regulations to determine how and when a taxpayer that
incurs qualified expenditures satisfies the requirements of
section 48A of such Code to provide broadband services, and
(B) regulations describing the information, records, and data
taxpayers are required to provide the Secretary to
substantiate compliance with the requirements of section 48A
of such Code.
(g) Effective Date.--The amendments made by this section
shall apply to expenditures incurred after December 31, 2003.
______

SA 3054. Mr. ROCKEFELLER submitted an amendment intended to be
proposed to amendment SA 3048 proposed by Mr. McCain to the bill S.
150, to make permanent the moratorium on taxes on Internet access and
multiple and discriminatory taxes on electronic commerce imposed by the
Internet Tax Freedom Act; which was ordered to lie on the table; as
follows:

At the end add the following:

TITLE     --PHONE BILL FAIRNESS ACT.

SECTION--01. SHORT TITLE.

This title may be cited as the ``Phone Bill Fairness Act''.

SEC.--02. FINDINGS; PURPOSE.

(a) Findings.--Congress makes the following findings:
(1) Customer bills for telecommunications services are
unreasonably complicated, and many Americans are unable to
understand the nature of services provided to them and the
charges for which they are responsible.
(2) One of the purposes of the Telecommunications Act of
1996 (Public Law 104-104) was to unleash competitive and
market forces for telecommunications services.
(3) Unless customers can understand their
telecommunications bills they cannot take advantage of the
newly competitive market for telecommunications services.
(4) Confusing telecommunications bills allow a small
minority of providers of telecommunications services to
commit fraud more easily. The best defense against
telecommunications fraud is a well informed consumer.
Consumers cannot be well informed when their
telecommunications bills are incomprehensible.
(5) Certain providers of telecommunications services have
established new, specific charges on customer bills commonly
known as ``line-item charges''.
(6) These line-item charges have proliferated and are often
described with inaccurate and confusing names.
(7) These line-item charges have generated significant
confusion among customers regarding the nature and scope of
universal service and of the fees associated with universal
service.
(8) The National Association of Regulatory Utility
Commissioners adopted a resolution in February 1998
supporting action by the Federal Communications Commission to
require interstate telecommunications carriers to provide
accurate customer notice regarding the implementation and
purpose of end-user charges for telecommunications services.
(b) Purpose.--It is the purpose of this Act to require the
Federal Communications Commission and the Federal Trade
Commission to protect and empower consumers of
telecommunications services by assuring that
telecommunications bills, including line-item charges, issued
by telecommunications carriers nationwide are both accurate
and comprehensible.

SEC.--03. INVESTIGATION OF TELECOMMUNICATIONS CARRIER BILLING
PRACTICES.

(a) Investigation.--
(1) Requirement.--The Federal Communications Commission and
the Federal Trade Commission shall jointly conduct an
investigation of the billing practices of telecommunications
carriers.
(2) Purpose.--The purpose of the investigation is to
determine whether the bills sent by telecommunications
carriers to their customers accurately assess and correctly
characterize the services received and fees charged for such
services, including any fees imposed as line-item charges.
(b) Determinations.--In carrying out the investigation
under subsection (a), the Federal Communications Commission
and the Federal Trade Commission shall determine the
following:
(1) The prevalence of incomprehensible or confusing
telecommunications bills.
(2) The most frequent causes for confusion on
telecommunications bills.
(3) Whether or not any best practices exist, which, if
utilized as an industry standard, would reduce confusion and
improve comprehension of telecommunications bills.
(4) Whether or not telecommunications bills that impose
fees through line-item charges characterize correctly the
nature and basis of such fees, including, in particular,
whether or not such fees are required by the Federal
Government or State governments.
(c) Review of Records.--
(1) Authority.--For purposes of the investigation under
subsection (a), the Federal Communications Commission and the
Federal Trade Commission may obtain from any
telecommunications carrier any record of such carrier that is
relevant to the investigation, including any record
supporting such carrier's basis for setting fee levels or
percentages.
(2) Use.--The Federal Communications Commission and the
Federal Trade Commission may use records obtained under this
subsection only for purposes of the investigation.
(d) Disciplinary Actions.--
(1) In general.--If the Federal Communications Commission
or the Federal Trade Commission determines as a result of the
investigation under subsection (a) that the bills sent by a
telecommunications carrier to its customers do not accurately
assess or correctly characterize any service or fee contained
in such bills, the Federal Communications Commission or the
Federal Trade Commission, as the case may be, may take such
action against such carrier as such Commission is authorized
to take under law.
(2) Characterization of fees.--If the Federal
Communications Commission or the Federal Trade Commission
determines as a result of the investigation under subsection
(a) that a telecommunications carrier has characterized a fee
on bills sent to its customers as mandated or otherwise
required by the Federal Government or a State and that such
characterization is incorrect, the Federal Communications
Commission or the Federal Trade Commission, as the case may

[[Page S4608]]

be, may require the carrier to discontinue such
characterization.
(3) Additional actions.--If the Federal Communications
Commission or the Federal Trade Commission determines that
such Commission does not have authority under law to take
actions under paragraph (1) that would be appropriate in
light of a determination described in paragraph (1), the
Federal Communications Commission or the Federal Trade
Commission, as the case may be, shall notify Congress of the
determination under this paragraph in the report under
subsection (e).
(e) Report.--Not later than one year after the date of the
enactment of this Act, the Federal Communications Commission
and the Federal Trade Commissions shall jointly submit to
Congress a report on the results of the investigation under
subsection (a). The report shall include the determination,
if any, of either Commission under subsection (d)(3) and any
recommendations for further legislative action that such
Commissions consider appropriate.

SEC. _04. TREATMENT OF MISLEADING TELECOMMUNICATIONS BILLS
AND TELECOMMUNICATIONS RATE PLANS.

(a) Federal Trade Commission.--The Federal Trade Commission
shall treat any telecommunications billing practice or
telecommunications rate plan that the Commission determines
to be intentionally misleading as an unfair business practice
under the Federal Trade Commission Act (15 U.S.C. 41 et
seq.).
(b) Federal Communications Commission.--The Federal
Communications Commissions shall, upon finding that any
holder of a license under the Commission has repeatedly and
intentionally engaged in a telephone billing practice, or has
repeatedly and intentionally utilized a telephone rate plan,
that is misleading, treat such holder as acting against the
public interest for purposes of the Communications Act of
1934 (47 U.S.C. 151 et seq.).

SEC. _05. REQUIREMENTS FOR ALL BILLS FOR TELECOMMUNICATIONS
SERVICES.

(a) Average Per Minute Rate Calculation.--Each
telecommunications carrier shall display on the first page of
each customer bill for telecommunications services the
average per-minute charge of telecommunications services of
such customer for the billing period covered by such bill.
(b) Calling Patterns.--Each telecommunications carrier
shall display on the first page of each customer bill for
telecommunications services the percentage of the total
number of telephone calls of such customer for the billing
period covered by such bill as follows:
(1) That began on a weekday.
(2) That began on a weekend.
(3) That began from 8 a.m. to 8 p.m.
(4) That began from 8:01 p.m. to 7:59 a.m.
(5) That were billed to a calling card.
(c) Average Per-Minute Charge Defined.--In this section,
the term ``average per-minute charge'', in the case of a bill
of a customer for a billing period, means
(1) the sum of--
(A) the aggregate amount of monthly or other recurring
charges, if any, for telecommunications services imposed on
the customer by the bill for the billing period; and
(B) the total amount of all per-minute charges for
telecommunications services imposed on the customer by the
bill for the billing period; divided by
(2) the total number of minutes of telecommunications
services provided to the customer during the billing period
and covered by the bill.

SEC. _06. REQUIREMENTS FOR TELECOMMUNICATIONS CARRIERS
IMPOSING CERTAIN CHARGES FOR SERVICES.

(a) Billing Requirements.--Any telecommunications carrier
shall include on the bills for telecommunications services
sent to its customers the following:
(1) An accurate name and description of any covered charge.
(2) The recipient or class of recipients of the monies
collected through each such charge.
(3) A statement whether each such charge is required by law
or collected pursuant to a requirement imposed by a
governmental entity under its discretionary authority.
(4) A specific explanation of any reduction in charges or
fees to customers, and the class of telephone customer that
such reduction, that are related to each such charge.
(b) Universal Service Contributions and Receipts.--Not
later than January 31 each year, each telecommunications
carrier required to contribute to universal service during
the previous year under section 254(d) of the Communications
Act of 1934 (47 U.S.C. 254(d)) shall submit to the Federal
Communications Commission a report on the following:
(1) The total contributions of the carrier to the universal
service fund during the previous year.
(2) The total receipts from customers during such year
designed to recover contributions to the fund.
(c) Action on Universal Service Contributions and Receipts
Data.--
(1) Review.--The Federal Communications Commission shall
review the reports submitted to the Commission under
subsection (b) in order to determine whether or not the
amount of the contributions of a telecommunications carrier
to the universal service fund in any year is equal to the
amount of the receipts of the telecommunications carrier from
its customers in such year for purposes of contributions to
the fund.
(2) Additional contributions.--If the Commission determines
as a result of a review under paragraph (1) that the amount
of the receipts of a telecommunications carrier from its
customers in a year for purposes of contributions to the
universal service fund exceeded the amount contributed by the
carrier in such year to the fund, the Commission shall have
the authority to require the carrier to deposit in the fund
an amount equal to the amount of such excess.
(d) Covered Charges.--For purposes of subsection (a), a
covered charge shall include any charge on a bill for
telecommunications services that is separate from a per-
minute rate charge, including a universal service charge, a
subscriber line charge, and a resubscribed interchange
carrier charge.

SEC. _07. TELECOMMUNICATIONS CARRIER DEFINED.

In this Act, the term ``telecommunications carrier'' has
the meaning given that term in section 3(44) of the
Communications Act of 1934 (47 U.S.C. 153(44)).
______

SA 3055. Mr. ALLEN submitted an amendment intended to be proposed to
amendment SA 3048 proposed by Mr. McCain to the bill S. 150, to make
permanent the moratorium on taxes on Internet access and multiple and
discriminatory taxes on electronic commerce imposed by the Internet Tax
Freedom Act; which was ordered to lie on the table; as follows:

On page 5, line 2, strike ``2006.'' and insert ``2005.''.
______

SA 3056. Mr. ALLEN submitted an amendment intended to be proposed to
amendment SA 3048 proposed by Mr. McCain to the bill S. 150, to make
permanent the moratorium on taxes on Internet access and multiple and
discriminatory taxes on electronic commerce imposed by the Internet Tax
Freedom Act; which was ordered to lie on the table; as follows:

On page 4, beginning with line 9, strike through line 20 on
page 5, and insert the following:

``SEC. 1104. GRANDFATHERING OF PRE-OCTOBER 1998 TAXES.

``(a) In General.--Section 1101(a) does not apply to a tax
on Internet access that was generally imposed and actually
enforced prior to October 1, 1998, if, before that date, the
tax was authorized by statute and either--
`(1) a provider of Internet access services had a
reasonable opportunity to know, by virtue of a rule or other
public proclamation made by the appropriate administrative
agency of the State or political subdivision thereof, that
such agency has interpreted and applied such tax to Internet
access services; or
``(2) a State or political subdivision thereof generally
collected such tax on charges for Internet access.
``(b) Termination.--Subsection (a) shall not apply after
November 1, 2006.''.
______

SA 3057. Mr. ALLEN submitted an amendment intended to be proposed to
amendment SA 3048 proposed by Mr. McCain to the bill S. 150, to make
permanent the moratorium on taxes on Internet access and multiple and
discriminatory taxes on electronic commerce imposed by the Internet Tax
Freedom Act; which was ordered to lie on the table; as follows:

On page 2, strike lines 1 through 6, and insert the
following:
``(a) Moratoria.--
``(1) Multiple or discriminatory taxes on electronic
commerce.--No State or political subdivision thereof may
impose multiple or discriminatory taxes on electronic
commerce.
``(2) Taxes on internet access.--No State or political
subdivision thereof may impose a tax on Internet access
during the period beginning November 1, 2003, and ending
November 1, 2007.''.
______

SA 3058. Mr. ALLEN submitted an amendment intended to be proposed to
amendment SA 3048 proposed by Mr. McCain to the bill S. 150, to make
permanent the moratorium on taxes on Internet access and multiple and
discriminatory taxes on electronic commerce imposed by the Internet Tax
Freedom Act; which was ordered to lie on the table; as follows:

On page 2, strike lines 1 through 7, and insert the
following:
``(a) Moratorium.--No State or political subdivision
thereof may impose any of the following taxes:
``(1) Taxes on Intenet access.
``(2) Multiple or discriminatory taxes on electronic
commerce.''.
On page 8, between lines 9 and 10, insert the following:

SEC. 7. RESTORATION OF ORIGINAL DEFINITION OF INTERNET ACCESS
AFTER 4 YEARS.

``(a) In General.--
``(1) Paragraph (3)(D) of section 1101(d) (as redesignated
by section 2(b)(1) of this Act) is amended by striking the
second sentence and

[[Page S4609]]

inserting ``Such term does not include telecommunications
services.''.
``(2) Paragraph (5) of section 1105 (as redesignated by
section 3(1) of this Act) is amended by striking the second
sentence and inserting ``Such term does not include
telecommunications services.''.
``(b) Effective Date.--The amendments made by subsection
(a) shall take effect on November 2, 2007.
On page 8, line 10, strike ``SEC. 7.'' and insert ``SEC.
8.''.
On page 8, line 11, strike ``The'' and insert ``Except as
provided in section 7(b), the''.
______

SA 3059. Mr. BINGAMAN submitted an amendment intended to be proposed
to amendment SA 3048 proposed by Mr. McCain to the bill S. 150, to make
permanent the moratorium on taxes on Internet access and multiple and
discriminatory taxes on electronic commerce imposed by the Internet Tax
Freedom Act; which was ordered to lie on the table; as follows:

On page 5, line 2, strike ``2006'' and insert ``2007''.
______

SA 3060. Mr. CARPER submitted an amendment intended to be proposed to
amendment SA 3048 proposed by Mr. McCain to the bill S. 150, to make
permanent the moratorium on taxes on Internet access and multiple and
discriminatory taxes on electronic commerce imposed by the Internet Tax
Freedom Act; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. _. INTERNET TAX PROVIDERS MUST PAY OTHER STATE TAXES
THEY ARE REQUIRED TO PAY.

Nothing in the Internet Tax Freedom Act (47 U.S.C. 151
note) may be construed to exempt an Internet access provider
(within the meaning of that Act) from liability to pay any
tax that is--
(1) generally applied under the authority of State law; and
(2) the legal liability of that Internet access provider.
______

SA 3061. Mr. CARPER submitted an amendment intended to be proposed to
amendment SA 3048 proposed by Mr. McCain to the bill S. 150, to make
permanent the moratorium on taxes on Internet access and multiple and
discriminatory taxes on electronic commerce imposed by the Internet Tax
Freedom Act; which was ordered to lie on the table; as follows:

On page 2, line 1, strike ``No State or political
subdivision thereof may'' and insert ``The Federal Government
and a State or political subdivision thereof may not''.
______

SA 3062. Mr. CARPER submitted an amendment intended to be proposed to
amendment SA 3048 proposed by Mr. McCain to the bill S. 150, to make
permanent the moratorium on taxes on Internet access and multiple and
discriminatory taxes on electronic commerce imposed by the Internet Tax
Freedom Act; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. SENSE OF THE SENATE.

(a) Findings.--The Senate finds that the Unfunded Mandates
Reform Act of 1995 (P.L. 104-4) was passed--
(1) ``to end the imposition, in the absence of full
consideration by Congress, of Federal mandates on State,
local, and tribal governments without adequate Federal
funding, in a manner that may displace other essential State,
local, and tribal governmental priorities'';
(2) to provide ``for the development of information about
the nature and size of mandates in proposed legislation'';
(3) ``to establish a point-of-order vote on the
consideration in the Senate and House of Representatives of
legislation containing significant Federal intergovernmental
mandates without providing adequate funding to comply with
such mandates'';
(4) to require that ``Federal agencies prepare and consider
better estimates of the budgetary impact of regulations
containing Federal mandates upon State, local, and tribal
governments before adopting such regulations, and ensuring
that small governments are given special consideration in
that process''; and
(5) to establish the general rule that Congress shall not
impose Federal mandates on State, local, and tribal
governments without providing adequate funding to comply with
such mandates.
(b) Sense of the Senate.--It is the sense of the Senate
that--
(1) the Unfunded Mandates Reform Act of 1995 constituted an
important pledge on the part of the Federal Government, in
general, and Congress, in particular, to refrain from
imposing Federal mandates on State, local, and tribal
governments without providing adequate resources to
compensate State, local, and tribal governments for the cost
of complying with such mandates;
(2) at this time when State, local, and tribal governments
are struggling to cope with the worst State and local fiscal
crisis since World War II, it is urgently important that
Congress adhere to its commitments under the Unfunded
Mandates Reform Act of 1995; and
(3) Congress should not pass laws mandating that States or
localities spend new money or forgo collecting currently
collected revenues, unless Congress--
(A) has clear and precise estimates of the budgetary
impacts of such mandates upon States, local governments, and
tribal governments; and
(B) provides adequate funding to cover the cost to States
and localities of complying with such mandates.
______

SA 3063. Mr. CARPER submitted an amendment intended to be proposed to
amendment SA 3048 proposed by Mr. McCain to the bill S. 150, to make
permanent the moratorium on taxes on Internet access and multiple and
discriminatory taxes on electronic commerce imposed by the Internet Tax
Freedom Act; which was ordered to lie on the table; as follows:

At the end of the bill, add the following:

TITLE II--CORPORATE SUBSIDY REFORM

SEC. 201. SHORT TITLE.

This title may be cited as the ``Corporate Subsidy Reform
Commission Act of 2004''.

SEC. 202. FINDINGS.

The Congress finds that--
(1) Federal subsidies, including tax advantages, which may
have been enacted with a valid purpose for specific
industries or industry segments can--
(A) fall subject to abuse, causing unanticipated and
unjustified windfalls to some industries and industry
segments; or
(B) become obsolete, anticompetitive, or no longer in the
public interest, making such subsidies unnecessary or
undesired;
(2) it is unfair to force the United States taxpayer to
support unnecessary subsidies, including tax advantages, that
do not provide a substantial public benefit or serve the
public interest;
(3) the Congress has been unable to evaluate methodically
those Federal subsidies that are unfair and unnecessary and
require reform or elimination; and
(4) a Commission to advise the Congress is essential to a
comprehensive review of such unfair corporate subsidies and
to the reform or elimination of such subsidies.

SEC. 203. PURPOSE.

The purpose of this title is to establish a fair and
deliberative process that will result in the timely
identification, review, and reform or elimination of
unnecessary and inequitable subsidies, including tax
advantages, provided by the Federal Government to entities or
industries engaged in profit-making enterprises.

SEC. 204. DEFINITION.

For purposes of this title, the term ``inequitable Federal
subsidy''--
(1) except as provided in paragraph (2), means a payment,
benefit, service, or tax advantage that--
(A) is provided by the Federal Government to any
corporation, partnership, joint venture, association, or
business trust other than--
(i) a nonprofit organization described under section
501(c)(3) of the Internal Revenue Code of 1986 that is exempt
from taxation under section 501(a) of the Internal Revenue
Code of 1986; or
(ii) a State or local government or Indian Tribe; and
(B) provides an unfair competitive advantage or financial
windfall; and
(2) does not include a payment, benefit, service, or tax
advantage that is awarded for the purposes of research and
development in the broad public interest on the basis of a
peer reviewed or other open, competitive, merit-based
procedure.

SEC. 205. THE COMMISSION.

(a) Establishment.--There is established an independent
commission to be known as the ``Corporate Subsidy Reform
Commission'' (hereafter in this title referred to as the
``Commission'').
(b) Duties.--The Commission shall--
(1) examine the programs and laws of the Federal Government
and identify such programs and laws that provide inequitable
Federal subsidies;
(2) review inequitable Federal subsidies; and
(3) submit the report required under section 206(c) to the
Congress, making recommendations regarding the termination,
modification, or retention of inequitable Federal subsidies.
(c) Limitations.--
(1) Creation of new programs or taxes.--This title is not
intended to result in the creation of new programs or taxes.
The Commission established in this section shall limit its
activities to reviewing existing programs or laws with the
goal of ensuring fairness and equity in the operation and
application thereof.
(2) Elimination of agencies and departments.--The
Commission--
(A) shall limit its recommendations to the termination or
reform of payments, benefits, services, or tax advantages;
and
(B) shall not recommend the termination of any Federal
agency or department.
(d) Advisory Committee.--The Commission shall be considered
an advisory committee within the meaning of that term in the
Federal Advisory Committee Act (5 U.S.C. App.).
(e) Appointment.--

[[Page S4610]]

(1) Members.--The members of the Commission--
(A) shall be appointed for the life of the Commission; and
(B) shall be composed of 8 members, of whom--
(i) 2 shall be appointed by the Speaker of the House of
Representatives;
(ii) 2 shall be appointed by the minority leader of the
House of Representatives;
(iii) 2 shall be appointed by the majority leader of the
Senate, one of whom shall be designated by the majority
leader to serve as a co-chair; and
(iv) 2 shall be appointed by the minority leader of the
Senate, one of whom shall be designated by the minority
leader to serve as a co-chair.
(2) Consultation required.--The Speaker of the House of
Representatives, the minority leader of the House of
Representatives, the majority leader of the Senate, and the
minority leader of the Senate shall consult among themselves
prior to the appointment of the members of the Commission in
order to achieve, to the maximum extent possible, fair and
equitable representation of various points of view with
respect to the matters to be studied by the Commission under
subsection (b).
(3) Background.--The members shall represent a broad array
of expertise covering, to the extent practical, all subject
matter, programs, and laws the Commission is likely to
review.
(f) Meetings.--
(1) Initial meeting.--No later than April 1, 2004, the
Commission shall conduct its first meeting.
(2) Open meetings.--Each meeting of the Commission shall be
open to the public, except that in cases in which classified
information, trade secrets, or personnel matters are
discussed, the co-chairs may close the meeting. All
proceedings, information, and deliberations of the Commission
shall be available, upon request, to the Chairman and ranking
minority member of the relevant Committee of the Congress
having jurisdiction to report legislation regarding the
subject matter thereof.
(g) Vacancies.--A vacancy on the Commission shall be filled
in the same manner as the original appointment.
(h) Pay and Travel Expenses.--
(1) Pay.--Notwithstanding section 7 of the Federal Advisory
Committee Act (5 App. U.S.C.), each member of the Commission,
other than the co-chairs, shall be paid at a rate equal to
the daily equivalent of the minimum annual rate of basic pay
for level IV of the Executive Schedule under section 5315 of
title 5, United States Code, for each day (including travel
time) during which the member is engaged in the actual
performance of duties vested in the Commission.
(2) Chairmen.--Notwithstanding section 7 of the Federal
Advisory Committee Act (5 App. U.S.C.), the co-chairs shall
be paid for each day referred to in paragraph (1) at a rate
equal to the daily payment of the minimum annual rate of
basic pay payable for level III of the Executive Schedule
under section 5314 of title 5, United States Code.
(3) Travel expenses.--Members of the Commission shall
receive travel expenses, including per diem in lieu of
subsistence, in accordance with section 5702 and 5703 of
title 5, United States Code.
(i) Director of Staff.--
(1) Qualifications.--The co-chairs shall appoint as
Director an individual who has not, during the 12 months
preceding the date of such appointment, served in any of the
entities or industries that the Commission intends to review.
(2) Pay.--Notwithstanding section 7 of the Federal Advisory
Committee Act (5 App. U.S.C.), the Director shall be paid at
the rate of basic pay payable for level IV of the Executive
Schedule under section 5315 of title 5, United States Code.
(3) Reports.--The Director shall submit periodic reports on
administrative and personnel matters to the co-chairs of the
Commission and the Chairman and ranking minority member of
the Committee on Governmental Affairs of the Senate and the
Committee on Government Reform of the House of
Representatives.
(j) Staff.--
(1) Additional personnel.--Subject to paragraphs (2) and
(4), the Director, with the approval of the Commission, may
appoint and fix the pay of additional personnel.
(2) Appointments.--The Director may make such appointments
without regard to the provisions of title 5, United States
Code, governing appointments in the competitive service, and
any personnel so appointed may be paid without regard to the
provisions of chapter 51 and subchapter III of chapter 53 of
that title relating to classification and General Schedule
pay rates.
(3) Legal staff.--The Director shall appoint under
paragraph (2) such professional legal staff as are necessary
for the performance of the functions of the Commission.
(4) Detailees.--Upon the request of the Director, the head
of any Federal department or agency may detail any of the
personnel of that department or agency to the Commission to
assist the Commission in accordance with an agreement entered
into with the Commission.
(5) Restrictions on personnel and detailees.--The following
restrictions shall apply to personnel and detailees of the
Commission:
(A) Personnel.--No more than one-third of the personnel
detailed to the Commission may be on detail from Federal
agencies that deal directly or indirectly with the Federal
subsidies the Commission intends to review.
(B) Analysts.--No more than one-fifth of the professional
analysts of the Commission may be persons detailed from a
Federal agency that deals directly or indirectly with the
Federal subsidies the Commission intends to review.
(C) Lead analyst.--No person detailed from a Federal agency
to the Commission may be assigned as the lead professional
analyst with respect to an entity or industry the Commission
intends to review if the person has been involved in
regulatory or policy-making decisions affecting any such
entity or industry in the 12 months preceding such
assignment.
(D) Detailee.--A person may not be detailed from a Federal
agency to the Commission if, within 12 months before the
detail is to begin, that person participated personally and
substantially in any matter within that particular agency
concerning the preparation of recommendations under this
title.
(E) Federal officer or employee.--No officer or employee of
a Federal agency may--
(i) prepare any report concerning the effectiveness,
fitness, or efficiency of the performance on the staff of the
Commission of any person detailed from a Federal agency to
that staff;
(ii) review the preparation of such report; or
(iii) approve or disapprove such a report.
(F) Limitation on staff size.--(i) Subject to clause (ii),
there may not be more than 25 persons (including any
detailees) on the staff at any time.
(ii) The Commission may increase the member of its
personnel in excess of the limitation under clause (i), 15
days after submitting notification of such increase to the
Committee on Governmental Affairs of the Senate and the
Committee on Government Reform of the House of
Representatives.
(G) Limitation on federal officer.--No member of a Federal
agency and no employee of a Federal agency may serve as a
member of the Commission or as a paid member of its staff.
(6) Assistance.--
(A) In general.--The Comptroller General of the United
States may provide assistance, including the detailing of
employees, to the Commission in accordance with an agreement
entered into with the Commission.
(B) Consultation.--The Commission and the Comptroller
General of the United States shall consult with the Committee
on Governmental Affairs of the Senate and the Committee on
Government Reform of the House of Representatives on the
agreement referred to under subparagraph (A) before entering
into such agreement.
(k) Other Authority.--
(1) Experts and consultants.--The Commission may procure by
contract, to the extent funds are available, the temporary or
intermittent services of experts or consultants pursuant to
section 3109 of title 5, United States Code.
(2) Leasing.--The Commission may lease space and acquire
personal property to the extent that funds are available.
(l) Funding.--There is authorized to be appropriated to the
Commission $4,000,000 to carry out its duties under this
title.
(m) Termination.--The Commission shall terminate on January
1, 2006.

SEC. 206. PROCEDURE FOR MAKING RECOMMENDATIONS TO TERMINATE
CORPORATE SUBSIDIES.

(a) Agency Plan.--
(1) In general.--The head of each Federal department or
agency shall include in the documents submitted in support of
the budget of the agency for fiscal year 2005 a list
identifying all programs and laws administered by that
department or agency that the head of the department or
agency determines provide inequitable Federal subsidies.
(2) Contents.--Such list shall include--
(A) a detailed description of each program or law in
question;
(B) a statement identifying and detailing the extent to
which each payment, benefit, service, or tax advantage under
such program or law is an inequitable Federal subsidy;
(C) a statement summarizing the legislative history and
purpose of such payment, benefit, service, or tax advantage,
and the laws or policies directly or indirectly giving rise
to the need for such programs or law; and
(D) a recommendation to the Commission regarding the
termination, modification, or retention of each inequitable
Federal subsidy identified in the list.
(b) Review by the Commission.--
(1) In general.--At any time after the submission of the
budget documents to the Congress, the Commission shall
conduct public hearings on the termination, modification, or
retention of inequitable Federal subsidies, including the
recommendations included in the lists required under
subsection (a).
(2) Testimony under oath.--All testimony before the
Commission at a public hearing conducted under this paragraph
shall be presented under oath.
(c) Report and Recommendations of Commission.--
(1) Report to congress.--
(A) Requirement.--No later than March 31, 2005, the
Commission shall submit a report to the Congress containing
the Commission's findings and recommendations for
termination, modification, or retention of each of the
inequitable Federal subsidies reviewed by the Commission.

[[Page S4611]]

(B) Contents.--Such findings and recommendations shall
specify--
(i) all actions, circumstances, and considerations relating
to or bearing upon the recommendations; and
(ii) to the maximum extent practicable, the estimated
effect of the recommendations upon the policies, laws, and
programs directly or indirectly affected by the
recommendations.
(C) Supermajority requirement.--The Commission may not
include a recommendation in the report unless inclusion of
the recommendation is approved by at least 6 members of the
Commission.
(2) Information and justifications.--The Commission shall
include in its report information specifying--
(A) the reasons and justifications for the recommendations
of the Commission;
(B) to the maximum extent practicable, the estimated
fiscal, economic, and budgetary impact of accepting its
recommendations;
(C) the amount of the projected savings resulting from each
of its recommendations;
(D) all actions, circumstances, and considerations relating
to or bearing upon the recommendations and to the maximum
extent practicable, the estimated effect of the
recommendations upon the policies, laws and programs directly
or indirectly affected by the recommendations; and
(E) the specific changes in Federal statutes necessary to
implement the recommendations, including citation of the
relevant provisions of existing law.
(3) Submission to congress.--The report submitted to the
Congress under this subsection shall be submitted to the
Senate and the House of Representatives on the same day, and
shall be delivered to the Secretary of the Senate if the
Senate is not in session, and to the Clerk of the House of
the Representatives if the House is not in session.
(4) Federal register.--The report submitted under this
subsection shall be printed in the first issue of the Federal
Register after such submission.
(5) Changes in agency or department recommendations.--
(A) In general.--Subject to the deadline in paragraph (1)
and to subparagraphs (B) and (C) of this paragraph, in making
its recommendations, the Commission may make changes in any
of the recommendations made by a department or agency if the
Commission determines that such department or agency, in
treating any matter as an inequitable Federal subsidy,
deviated substantially from the provisions of section 204.
(B) Limitation.--The Commission may make a change in the
recommendations made by a department or agency, only if the
Commission--
(i) makes the determination required under subparagraph
(B); and
(ii) conducts a public hearing on the Commission's proposed
changes.
(C) Application of limitation.--Subparagraph (B) shall
apply only to a change by the Commission in a department or
agency recommendation that would--
(i) add or delete a payment, benefit, service, or tax
advantage to or from, respectively, the list recommended for
termination;
(ii) add or delete a payment, benefit, service, or tax
advantage to or from, respectively, the list recommended for
modification; or
(iii) increase or decrease the extent of a recommendation
to modify a payment, benefit, service, or tax advantage
included in a department's or agency's recommendation.
(D) Justification.--The Commission shall explain and
justify in the report submitted to the Congress under this
subsection any recommendation made by the Commission that is
different from a recommendation made by an agency under
subsection (a).
(6) Provision of information to members of congress.--After
March 31, 2005, the Commission shall, upon request, promptly
provide to any Member of Congress the information used by the
Commission in making its recommendations.
(7) Comptroller general.--The Comptroller General of the
United States shall--
(A) assist the Commission, to the extent requested, in the
Commission's review and analysis of the lists, statements,
and recommendations made by departments and agencies under
subsection (a); and
(B) no later than 60 days after April 1, 2004, or the
public release of the President's budget documents in 2004,
whichever is earlier, submit to the Congress and to the
Commission a report containing a detailed analysis of the
list, statements, and recommendations of each department or
agency.

SEC. 207. CONGRESSIONAL ACTION ON COMMISSION RECOMMENDATIONS.

It is the sense of the Congress that, following submission
of the report of the Corporate Subsidy Reform Commission
under section 206, the House of Representatives and the
Senate should promptly consider legislation that would enact
changes in Federal statutes necessary to implement the
recommendations of the Commission.
______

SA 3064. Mrs. FEINSTEIN submitted an amendment intended to be
proposed to amendment SA 3048 proposed by Mr. McCain to the bill S.
150, to make permanent the moratorium on taxes on Internet access and
multiple and discriminatory taxes on electronic commerce imposed by the
Internet Tax Freedom Act; which was ordered to lie on the table; as
follows:

At the end of the bill, add the following:

SEC. . 4-YEAR GRANDFATHER FOR EXISTING TAXES.

(a) In General.--Notwithstanding any provision of the
Internet Tax Freedom Act (47 U.S.C. 151 note), as amended by
this Act, to the contrary section 1101(a) of that Act does
not apply to--
(1) a tax on Internet access that was generally imposed and
actually enforced prior to October 1, 1998, if, before that
date, the tax was authorized by statute and either--
(A) a provider of Internet access services had a reasonable
opportunity to know, by virtue of a rule or other public
proclamation made by the appropriate administrative agency of
the State or political subdivision thereof, that such agency
has interpreted and applied such tax to Internet access
services; or
(B) a State or political subdivision thereof generally
collected such tax on charges for Internet access; or
(2) a tax on Internet access that was generally imposed and
actually enforced as of November 1, 2003, if, as of that
date, the tax was authorized by statute and--
(A) a provider of Internet access services had a reasonable
opportunity to know by virtue of a public rule or other
public proclamation made by the appropriate administrative
agency of the State or political subdivision thereof, that
such agency has interpreted and applied such tax to Internet
access services; and
(B) a State or political subdivision thereof generally
collected such tax on charges for Internet access.
(b) Termination.--This section shall not apply after
November l, 2007.
______

SA 3065. Mrs. FEINSTEIN submitted an amendment intended to be
proposed by her to the bill S. 150, to make permanent the moratorium on
taxes on Internet access and multiple and discriminatory taxes on
electronic commerce imposed by the Internet Tax Freedom Act; which was
ordered to lie on the table; as follows:

At the end of the bill, add the following:

SEC.     . GRANDFATHER FOR EXISTING TAXES.

(a) In General.--Notwithstanding any provision of the
Internet Tax Freedom Act (47 U.S.C. 151 note), as amended by
this Act, to the contrary section 1101(a) of that Act does
not apply to--
(1) a tax on Internet access that was generally imposed and
actually enforced prior to October 1, 1998, if, before that
date, the tax was authorized by statute and either--
(A) a provider of Internet access services had a reasonable
opportunity to know, by virtue of a rule or other public
proclamation made by the appropriate administrative agency of
the State or political subdivision thereof, that such agency
has interpreted and applied such tax to Internet access
services; or
(B) a State or political subdivision thereof generally
collected such tax on charges for Internet access; or
(2) a tax on Internet access that was generally imposed and
actually enforced as of November 1, 2003, if, as of that
date, the tax was authorized by statute and--
(A) a provider of Internet access services had a reasonable
opportunity to know by virtue of a public rule or other
public proclamation made by the appropriate administrative
agency of the State or political subdivision thereof, that
such agency has interpreted and applied such tax to Internet
access services; and
(B) a State or political subdivision thereof generally
collected such tax on charges for Internet access.
______

SA 3066. Mr. DORGAN submitted an amendment intended to be proposed by
him to the bill S. 150, to make permanent the moratorium on taxes on
Internet access and multiple and discriminatory taxes on electronic
commerce imposed by the Internet Tax Freedom Act; which was ordered to
lie on the table; as follows:

At the appropriate place, insert the following:

SEC.     . RESTORATION OF EXISTING DEFINITION OF INTERNET
ACCESS.

(a) In General.--
(1) Paragraph (3)(D) of section 1101(d) (as redesignated by
section 2(b)(1) of this Act) is amended by striking the
second sentence and inserting ``Such term does not include
telecommunications services.''.
(2) Paragraph (5) of section 1105 (as redesignated by
section 3(1) of this Act) is amended by striking the second
sentence and inserting ``Such term does not include
telecommunications services.''.
(b) Effective Date.--The amendments made by subsection (a)
shall take effect on November 3, 2003.

SEC.     . LIMITATION ON TAXATION OF TELECOMMUNICATIONS
SERVICES RELATED TO ADVANCED TELECOMMUNICATIONS
CAPABILITY.

Notwithstanding any provision of the Internet Tax Freedom
Act (47 U.S.C. 151 note) to the contrary, no State or
political subdivision thereof may impose a tax on the retail
provision of advanced telecommunications capability (as
defined in section 706(c)(1) of the Telecommunications Act of
1996 (47 U.S.C. 157 note)) to consumers during the period
specified in section 1101(a) of that Act.

[[Page S4612]]

SEC.     . VOIP AND BROADBAND TELEPHONY EXCLUSION.

Section 1101(a) of the Internet Tax Freedom Act (47 U.S.C.
151 note) shall not apply to the imposition or collection of
any tax, fee, or charge on a service advertised or offered to
consumers for the provision of realtime voice
telecommunications regardless of whether such service employs
circuit-switched technology, packet switched technology, or
any successor technology or transmission protocol.

SEC.     . GRANDFATHERING OF EXISTING TAXES.

(a) In General.--Section 1104 of the Internet Tax Freedom
Act (47 U.S.C. 151 note) is amended to read as follows:

``SEC. 1104. EXCEPTIONS FOR CERTAIN TAXES.

``(a) Pre-October, 1998, Taxes.--Section 1101(a) does not
apply to a tax on Internet access (as that term was defined
in section 1104(5) of this Act as that section was in effect
on the day before the date of enactment of the Internet Tax
Ban Extension and Improvement Act) that was generally imposed
and actually enforced prior to October 1, 1998, if, before
that date, the tax was authorized by statute and either--
``(1) a provider of Internet access services had a
reasonable opportunity to know by virtue of a rule or other
public proclamation made by the appropriate administrative
agency of the State or political subdivision thereof, that
such agency has interpreted and applied such tax to Internet
access services; or
``(2) a State or political subdivision thereof generally
collected such tax on charges for Internet access.
``(b) Taxes on Telecommunications Services.--Section
1101(a) does not apply to a tax on Internet access that was
generally imposed and actually enforced as of November 1,
2003, if, as of that date, the tax was authorized by statute
and either--
``(1) a provider of Internet access services had a
reasonable opportunity to know by virtue of a rule or other
public proclamation made by the appropriate administrative
agency of the State or political subdivision thereof, that
such agency has interpreted and applied such tax to Internet
access services; or
``(2) a State or political subdivision thereof generally
collected such tax on charges for Internet access service.''.
(b) Effective Date.--The amendment made by subsection (a)
takes effect on November 3, 2003.
______

SA 3067. Mr. DORGAN submitted an amendment intended to be proposed by
him to the bill S. 150, to make permanent the moratorium on taxes on
Internet access and multiple and discriminatory taxes on electronic
commerce imposed by the Internet Tax Freedom Act; which was ordered to
lie on the table; as follows:

At the appropriate place, insert the following:

SEC.     . RESTORATION OF EXISTING DEFINITION OF INTERNET
ACCESS.

(a) In General.--
(1) Paragraph (3)(D) of section 1101(d) (as redesignated by
section 2(b)(1) of this Act) is amended by striking the
second sentence and inserting ``Such term does not include
telecommunications services.''.
(2) Paragraph (5) of section 1105 (as redesignated by
section 3(l) of this Act) is amended by striking the second
sentence and inserting ``Such term does not include
telecommunications services.''.
(b) Effective Date.--The amendments made by subsection (a)
shall take effect on November 3, 2003.

SEC.     . LIMITATION ON TAXATION OF TELECOMMUNICATIONS
SERVICES RELATED TO ADVANCED TELECOMMUNICATIONS
CAPABILITY.

Notwithstanding any provision of the Internet Tax Freedom
Act (47 U.S.C. 151 note) to the contrary, no State or
political subdivision thereof may impose a tax on the retail
provision of advanced telecommunications capability (as
defined in section 706(c)(1) of the Telecommunications Act of
1996 (47 U.S.C. 157 note)) to consumers during the period
specified in section 1101 (a) of that Act.

SEC.     . VOIP AND BROADBAND TELEPHONY EXCLUSION.

Section 1101(a) of the Internet Tax Freedom Act (47 U.S.C.
151 note) shall not apply to the imposition or collection of
any tax, fee, or charge on a service advertised or offered to
consumers for the provision of realtime voice
telecommunications regardless of whether such service employs
circuit-switched technology, packet switched technology, or
any successor technology or transmission protocol.
______

SA 3068. Mr. ALEXANDER submitted an amendment intended to be proposed
to amendment SA 3048 proposed by Mr. McCain to the bill S. 150, to make
permanent the moratorium on taxes on Internet access and multiple and
discriminatory taxes on electronic commerce imposed by the Internet Tax
Freedom Act; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC.  . REIMBURSEMENT OF STATE AND LOCAL GOVERNMENTS FOR
REVENUES FORGONE DUE TO INTERNET TAX FREEDOM
ACT.

(a) Application.--Upon a proper accounting and showing, at
such time, in such form, and containing such information as
the Secretary of the Treasury shall require, each State,
local government, or other taxing authority shall request
reimbursement from the Treasury of the United States for tax
revenues forgone by that State, local government, or other
taxing authority because of section 1101 of the Internet Tax
Freedom Act (47 U.S.C. 151). Any such request shall be made
by written application, signed under penalty of perjury, by
the chief executive officer of the State, local government,
or other taxing authority requesting reimbursement.
(b) Certain Taxes Ineligible for Reimbursement.--Subsection
(a) shall not apply to revenues lost from--
(1) any tax imposed only on Internet access; or
(2) any rate of tax imposed on Internet access that exceeds
the rate at which that tax is imposed on other taxable
activities to which the tax applies.
(c) No Interest or Penalties.--No payment may be made under
this section for any amount attributable to interest or
penalties.
(d) Authority To Pay.--The Secretary of the Treasury shall
pay, upon application, such amounts as the Secretary
determines to be requested in accordance with subsection (a)
and supported by such documentation as the Secretary may
require, to any State, local government, or other taxing
authority that requests reimbursement under subsection (a).
(e) Funding.--Notwithstanding any other provision of law to
the contrary, amounts received in the general fund of the
Treasury attributable to taxes imposed and collected under
subchapter B of chapter 33 of the Internal Revenue Code of
1986 shall be available, without further appropriation, to
make payments under this section.
______

SA 3069. Mr. ALEXANDER submitted an amendment intended to be proposed
to amendment SA 3048 proposed by Mr. McCain to the bill S. 150, to make
permanent the moratorium on taxes on Internet access and multiple and
discriminatory taxes on electronic commerce imposed by the Internet Tax
Freedom Act; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC.  . $25 PER MONTH CAP.

Notwithstanding any provision of the Internet Tax Freedom
Act (47 U.S.C. 151 note) to the contrary, the prohibition on
the imposition of tax on Internet access provided by section
1101(a) of that Act shall apply only with respect to the
first $25 of charges per month per subscriber for Internet
access.
______

SA 3070. Mr. ALEXANDER submitted an amendment intended to be proposed
to amendment SA 3048 proposed by Mr. McCain to the bill S. 150, to make
permanent the moratorium on taxes on Internet access and multiple and
discriminatory taxes on electronic commerce imposed by the Internet Tax
Freedom Act; which was ordered to lie on the table; as follows:

In lieu of the matter proposed to be inserted, insert the
following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Internet Tax Ban Extension
and Improvement Act''.

SEC. 2. 2-YEAR EXTENSION OF MORATORIUM.

Section 1101(a) of the Internet Tax Freedom Act (47 U.S.C.
151 nt) is amended--
(1) by striking ``2003--'' and inserting ``2005:'';
(2) by striking paragraph (1) and inserting the following:
``(1) Taxes on Internet access.''; and
(3) by striking ``multiple'' in paragraph (2) and inserting
``Multiple''.

SEC. 3. EXCEPTIONS FOR CERTAIN TAXES.

The Internet Tax Freedom Act (47 U.S.C. 151 note) is
amended--
(1) by redesignating section 1104 as section 1105; and
(2) by inserting after section 1103 the following:

``SEC. 1104. EXCEPTIONS FOR CERTAIN TAXES.

``(a) Pre-October, 1998, Taxes.--Section 1101(a) does not
apply to a tax on Internet access (as that term was defined
in section 1104(5) of this Act as that section was in effect
on the day before the date of enactment of the Internet Tax
Ban Extension and Improvement Act) that was generally imposed
and actually enforced prior to October 1, 1998, if, before
that date, the tax was authorized by statute and either--
``(1) a provider of Internet access services had a
reasonable opportunity to know by virtue of a rule or other
public proclamation made by the appropriate administrative
agency of the State or political subdivision thereof, that
such agency has interpreted and applied such tax to Internet
access services; or
``(2) a State or political subdivision thereof generally
collected such tax on charges for Internet access.
``(b) Taxes on Telecommunications Services.--Section
1101(a) does not apply to a tag on Internet access that was
generally imposed and actually enforced as of November 1,
2003, if, as of that date, the tax was authorized by statute
and either--
``(1) a provider of Internet access services had a
reasonable opportunity to know by virtue of a rule or other
public proclamation

[[Page S4613]]

made by the appropriate administrative agency of the State or
political subdivision thereof, that such agency has
interpreted and applied such tax to Internet access services;
or
``(2) a State or political subdivision thereof generally
collected such tax on charges for Internet access service.''.

SEC. 4. CHANGE IN DEFINITIONS. OF INTERNET ACCESS SERVICE.

(a) In General. Paragraph (3)(D) of section 1101(e) of the
Internet Tax Freedom Act (47 U.S.C. 151 note) is amended by
striking the second sentence and inserting ``The term
`Internet access service' does not include telecommunications
services, except to the extent such services are purchased,
used, or sold by an Internet access provider to connect a
purchaser of Internet access to the Internet access
provider.''.
(b) Conforming Amendments.--
(1) Paragraph (2)(B)(1) of section 1105 of that Act, as
redesignated by subsection (a), is amended by striking
``except with respect to a tax (on Inter net access) that was
generally imposed and actually enforced prior to October 1,
1998,''.
(2) Internet access.--Paragraph (5) of section 1105 of that
Act, as redesignated by subsection (a), is amended by
striking the second sentence and inserting ``The term
`Internet access'' does not include telecommunications
services, except to the extent such services are purchased,
used, or sold by an Internet access provider to connect a
purchaser of Internet access to the Internet access
provider.''.
(3) Paragraph (10) of section 1105 of that Act, as
redesignated by subsection (a), is amended to read as
follows:
``(10) Tax on internet access.--
``(A) In general.--The term `tax on Internet access'' means
a tax on Internet access, regardless of whether such tax is
imposed on a provider of Internet access or a buyer of
Internet access and regardless of the terminology used to
describe the tax.
``(B) General exception.--The term `tax on Internet
access'' does not include a tax levied upon or measured by
net income, capital stock, net worth, or property value.''.

SEC. 5. ACCOUNTING RULE.

The Internet Tax Freedom Act (47 U.S.C. 151 note) is
amended by adding at the end the following:

``SEC. 1106. ACCOUNTING RULE.

``(a) In General.--If charges for Internet access are
aggregated with and not separately stated from charges for
telecommunications services or other charges that are subject
to taxation, then the charges for Internet access may be
subject to taxation unless the Internet access provider can
reasonably identify the charges for Internet access from its
books and records kept in the regular course of business.
``(b) Definitions.--In this section:
``(1) Charges for internet access.--The term `charges for
Internet access' means all charges for Internet access as
defined in section 1105(5).
``(2) Charges for telecommunications services.--The term
`charges for telecommunications services' means all charges
for telecommunications services except to the extent such
services are purchased, used, or sold by an Internet access
provider to connect a purchaser of Internet access to the
Internet access provider.''.

SEC. 6. EFFECT ON OTHER LAWS.

The Internet Tax Freedom Act (47 U.S.C. 151 note), amended
by section 4, is amended by adding at the end the following:

``SEC. 1107. EFFECT ON OTHER LAWS.

``(a) Universal Service.--Nothing in this Act shall prevent
the imposition or collection of any fees or charges used to
preserve and advance Federal universal service or similar
State programs--
``(1) authorized by section 254 of the Communications Act
of 1934 (47 U.S.C. 254); or
``(2) in effect on February 8, 1996.
``(b) 911 and E-911 Services.--Nothing in this Act shall
prevent the imposition or collection on a service used for
access to 911 or E-911 services, of any fee or charge
specifically designated or presented as dedicated by a State
or political subdivision thereof for the support of 911 or E-
911 services if no portion of the revenue derived from such
fee or charge is obligated or expended for any purpose other
than support of 911 or E-911 services.
``(c) Non-Tax Regulatory Proceedings.--Nothing in this Act
shall be construed to affect any Federal or State regulatory
proceeding that is not related to taxation.''.

SEC. 7. EFFECTIVE DATE.

The amendments made by this Act take effect November 1,
2003.
______

SA 3071. Mr. ALEXANDER submitted an amendment intended to be proposed
to amendment SA 3048 proposed by Mr. McCain to the bill S. 150, to make
permanent the moratorium on taxes on Internet access and multiple and
discriminatory taxes on electronic commerce imposed by the Internet Tax
Freedom Act; which was ordered to lie on the table; as follows:

Strike all after the first word and insert the following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Internet Tax
Nondiscrimination Act''.

SEC. 2. TWO-YEAR EXTENSION OF INTERNET TAX MORATORIUM.

(a) In General.--Subsection (a) of section 1101 of the
Internet Tax Freedom Act (47 U.S.C. 151 note) is amended to
read as follows:
``(a) Moratorium.--No State or political subdivision
thereof may impose any of the following taxes during the
period beginning November 1, 2003, and ending November 1,
2005:
``(1) Taxes on Internet access.
``(2) Multiple or discriminatory taxes on electronic
commerce.''.
(b) Conforming Amendments.--
(1) Section 1101 of the Internet Tax Freedom Act (47 U.S.C.
151 note) is amended by striking subsection (d) and
redesignating subsections (e) and (f) as subsections (d) and
(e), respectively.
(2) Section 1104(10) of the Internet Tax Freedom Act (47
U.S.C. 151 note) is amended to read as follows:
``(10) Tax on Internet Access.--
``(A) In General.--The term `tax on Internet access' means
a tax on Internet access, regardless of whether such tax is
imposed on a provider of Internet access or a buyer of
Internet access and regardless of the terminology used to
describe the tax.
``(B) General Exception.--The term `tax on Internet access'
does not include a tax levied upon or measured by net income,
capital stock, net worth, or property value.''.
(3) Section 1104(2)(B)(1) of the Internet Tax Freedom Act
(47 U.S.C. 151 note) is amended by striking ``except with
respect to a tax (on Internet access) that was generally
imposed and actually enforced prior to October 1, 1998,''.
(c) Internet Access Service; Internet Access.--
(1) Internet access service.--Paxagraph (3)(D) of section
1101(d) (as redesignated by subsection (b)(1) of this
section) of the Internet Tax Freedom Act (47 U.S.C. 151 note)
is amended by striking the second sentence and inserting
``The term `Internet access service' does not include
telecommunications services, except to the extent such
services are purchased, used, or sold by an Internet access
provider to connect a purchaser of Internet access to the
Internet access provider.''.
(2) Internet access.--Section 1104(5) of that Act is
amended by striking the second sentence and inserting ``The
term `Internet access' does not include telecommunications
services, except to the extent such services are purchased,
used, or sold by an Internet access provider to connect a
purchaser of Internet access to the Internet access
provider.''.

SEC. 3. GRANDFATHERING OF STATES THAT TAX INTERNET ACCESS.

The Internet Tax Freedom Act (47 U.S.C. 151 note) is
amended--
(1) by redesignating section 1104 as section 1105; and
(2) by inserting after section 1103 the following:

``SEC. 1104. GRANDFATHERING OF STATES THAT TAX INTERNET
ACCESS.

``(a) Pre-October 1998 Taxes.--
``(1) In general.--Section 1101(a) does not apply to a tax
on Internet access (as that term was defined in section
1104(5) of this Act as that section was in effect on the day
before the date of enactment of the Internet Tax
Nondiscrimination Act) that was generally imposed and
actually enforced prior to October 1, 1998, if, before that
date, the tax was authorized by statute and either--
``(A) a provider of Internet access services had a
reasonable opportunity to know, by virtue of a rule or other
public proclamation made by the appropriate administrative
agency of the State or political subdivision thereof, that
such agency has interpreted and applied such tax to Internet
access services; or
``(B) a State or political subdivision thereof generally
collected such tax on charges for Internet access.
``(2) Termination.--This subsection shall not apply after
November 1, 2006.
``(b) Pre-November 2003 Taxes.--
``(1) In general.--Section 1101(a) does not apply to a tax
on Internet access that was generally imposed and actually
enforced as of November 1, 2003, if, as of that date, the tax
was authorized by statute and--
``(A) a provider of Internet access services had a
reasonable opportunity to know by virtue of a public rule or
other public proclamation made by the appropriate
administrative agency of the State or political subdivision
thereof, that such agency has interpreted and applied such
tax to Internet access services; and
``(B) a State or political subdivision thereof generally
collected such tax on charges for Internet access.
``(2) Termination.--This subsection shall not apply after
November 1, 2005.''.

SEC. 4. ACCOUNTING RULE.

The Internet Tax Freedom Act (47 U.S.C. 151 note) is
amended by adding at the end the following:

``SEC. 1106. ACCOUNTING RULE.

``(a) In General.--If charges for Internet access are
aggregated with and not separately stated from charges for
telecommunications services or other charges that are subject
to taxation, then the charges for Internet access may be
subject to taxation unless the Internet access provider can
reasonably identify the charges for Internet access from its
books and records kept in the regular course of business.
``(b) Definitions.--In this section:
``(1) Charges for internet access.--The term `charges for
Internet access' means all charges for Internet access as
defined in section 1105(5).

[[Page S4614]]

``(2) Charges for telecommunications services.--The term
`charges for telecommunications services' means all charges
for telecommunications services, except, to the extent such
services are purchased, used, or sold by an Internet access
provider to connect a purchaser of Internet access to the
Internet access provider.''.

SEC. 5. EFFECT ON OTHER LAWS.

The Internet Tax Freedom Act (47 U.S.C. 151 note), as
amended by section 4, is amended by adding at the end the
following:

``SEC. 1107. EFFECT ON OTHER LAWS.

``(a) Universal Service.--Nothing in this Act shall prevent
the imposition or collection of any fees or charges used to
preserve and advance Federal universal service or similar
State programs--
``(1) authorized by section 254 of the Communications Act
of 1934 (47 U.S.C. 254); or
``(2) in effect on February 8, 1996.
``(b) 911 and E-911 Services.--Nothing in this Act shall
prevent the imposition or collection, on a service used for
access to 911 or E-911 services, of any fee or charge
specifically designated or presented as dedicated by a State
or political subdivision thereof for the support of 911 or E-
911 services if no portion of the revenue derived from such
fee or charge is obligated or expended for any purpose other
than support of 911 or E-911 services.
``(c) Non-tax Regulatory Proceedings.--Nothing in this Act
shall be construed to affect any Federal or State regulatory
proceeding that is not related to taxation.''.

SEC. 6. EXCEPTION FOR VOICE AND OTHER SERVICES OVER THE
INTERNET.

The Internet Tax Freedom Act (47 U.S.C. 151 note), as
amended by section 5, is amended by adding at the end the
following:

``SEC. 1108. TAXATION OF TELEPHONE SERVICE.

Section 1101(a) of the Internet Tax Freedom Act (47 U.S.C.
151 note) shall not apply to the imposition or collection of
any tax, fee, or charge on a service advertised or offered to
consumers for the provision of realtime voice
telecommunications regardless of whether such service employs
circuit- switched technology, packet switched technology, or
any successor technology or transmission protocol.

SEC. 7. EFFECTIVE DATE.

The amendments made by this Act take effect on November 1,
2003.
______

SA 3072. Mr. ALEXANDER submitted an amendment intended to be proposed
to amendment SA 3048 proposed by Mr. McCain to the bill S. 150, to make
permanent the moratorium on taxes on Internet access and multiple and
discriminatory taxes on electronic commerce imposed by the Internet Tax
Freedom Act; which was ordered to lie on the table; as follows:

In lieu of the matter proposed to be inserted, insert the
following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Internet Tax
Nondiscrimination Act''.

SEC. 2. TWO-YEAR, EXTENSION OF INTERNET TAX MORATORIUM.

(a) In General.--Subsection (a) of section 1101 of the
Internet Tax Freedom Act (47 U.S.C. 151 note) is amended to
read as follows:
``(a) Moratorium.--No State or political subdivision
thereof may impose any of the following taxes during the
period beginning November 1, 2003, and ending November 1,
2005:
``(1) Taxes on Internet access.
``(2) Multiple or discriminatory taxes on electronic
commerce.''.
(b) Conforming Amendments.--
(1) Section 1101 of the Internet Tax Freedom Act (47 U.S.C.
151 note) is amended by striking subsection (d) and
redesignating subsections (e) and (f) as subsections (d) and
(e), respectively.
(2) Section 1104(10) of the Internet Tax Freedom Act (47
U.S.C. 151 note) is amended to read as follows:
``(10) Tax on internet access.--
``(A) In general.--The term `tax on Internet access' means
a tax on Internet access, regardless of whether such tax is
imposed on a provider of Internet access or a buyer of
Internet access and regardless of the terminology used to
describe the tax.
``(B) General Exception.--The term `tax on Internet access'
does not include a tax levied upon or measured by net income,
capital stock, net worth, or property value.''.
(3) Section 1104(2)(B)(i) of the Internet Tax Freedom Act
(47 U.S.C. 151 note) is amended by striking ``except with
respect to a tax (on Internet access) that was generally
imposed and actually enforced prior to October 1, 1998,''.
(c) Internet Access Service; Internet Access.--
(1) Internet access service.--Paragraph (3)(D) of section
1101(d) (as redesignated by subsection (b)(1) of this
section) of the Internet Tax Freedom Act (47 U.S.C. 151 note)
is amended by striking the second sentence and inserting
``The term `Internet access service' does not include
telecommunications services, except to the extent such
services are purchased, used, or sold by an Internet access
provider to connect a purchaser of Internet access to the
Internet access provider.''.
(2) Internet access.--Section 1104(5) of that Act is
amended by striking the second sentence and inserting ``The
term `Internet access' does not include telecommunications
services, except to the extent such services are purchased,
used, or sold by an Internet access provider to connect a
purchaser of Internet access to the Internet access
provider.''.

SEC. 3. GRANDFATHERING OF STATES THAT TAX INTERNET ACCESS.

The Internet Tax Freedom Act (47 U.S.C. 151 note) is
amended--
(1) by redesignating section 1104 as section 1105; and
(2) by inserting after section 1103 the following:

``SEC. 1104. GRANDFATHERING OF STATES THAT TAX INTERNET
ACCESS.

``(a) Pre-October 1998 Taxes.--
``(1) In general.--Section 1101(a) does not apply to a tax
on Internet access (as that term was defined in section
1104(5) of this Act as that section was in effect on the day
before the date of enactment of the Internet Tax
Nondiscrimination Act) that was generally imposed and
actually enforced prior to October 1, 1998, if, before that
date, the tax was authorized by statute and either--
``(A) a provider of Internet access services had a
reasonable opportunity to know, by virtue of a rule or other
public proclamation made by the appropriate administrative
agency of the State or political subdivision thereof, that
such agency has interpreted and applied such tax to Internet
access services; or
``(B) a State or political subdivision thereof generally
collected such tax on charges for Internet access.
``(2) Termination.--This subsection shall not apply after
November 1, 2006.
``(b) Pre-November 2003 Taxes.--
``(1) In General.--Section 1101(a) does not apply to a tax
on Internet access that was generally imposed and actually
enforced as of November 1, 2003, if, as of that date, the tax
was authorized by statute and--
``(A) a provider of Internet access services had a
reasonable opportunity to know by virtue of a public rule or
other public proclamation made by the appropriate
administrative agency of the State or political subdivision
thereof, that such agency has interpreted and applied such
tax to Internet access services; and
``(B) a State or political subdivision thereof generally
collected such tax on charges for Internet access.
``(2) Termination.--This subsection shall not apply after
November 1, 2005.''.

SEC. 4. ACCOUNTING RULE.

The Internet Tax Freedom Act (47 U.S.C. 151 note) is
amended by adding at the end the following:

``SEC. 1106. ACCOUNTING RULE.

``(a) In General.--If charges for Internet access are
aggregated with and not separately stated from charges for
telecommunications services or other charges that are subject
to taxation, then the charges for Internet access may be
subject to taxation unless the Internet access provider can
reasonably identify the charges for Internet access from its
books and records kept in the regular course of business.
``(b) Definitions.--In this section:
``(1) Charges for Internet Access.--The term `charges for
Internet access'' means all charges for Internet access as
defined in section 1105(5).
``(2) Charges for telecommunications services.--The term
`charges for telecommunications services' means all charges
for telecommunications services, except to the extent such
services are purchased, used, or sold by an Internet access
provider to connect a purchaser of Internet access to the
Internet access provider.''.

SEC. 5. EFFECT ON OTHER LAWS.

The Internet Tax Freedom Act (47 U.S.C. 151 note), as
amended by section 4, is amended by adding at the end the
following:

``SEC. 1107. EFFECT ON OTHER LAWS.

``(a) Universal Service.--Nothing in this Act shall prevent
the imposition or collection of any fees or charges used to
preserve and advance Federal universal service or similar
State programs--
``(1) authorized by section 254 of the Communications Act
of 1934 (47 U.S.C. 254); or
``(2) in effect on February 8, 1996.
``(b) 911 and E-911 Services.--Nothing in this Act shall
prevent the imposition or collection, on a service used for
access to 911 or E-911 services, of any fee or charge
specifically designated or presented as dedicated by a State
or political subdivision thereof for the support of 911 or E-
911 services if no portion of the revenue derived from such
fee or charge is obligated or expended for any purpose other
than support of 911 or E-911 services.
``(c) Non-Tax Regulatory Proceedings.--Nothing in this Act
shall be construed to affect any Federal or State regulatory
proceeding that is not related to taxation.''.

SEC. 6. EXCEPTION FOR VOICE AND OTHER SERVICES OVER THE
INTERNET.

The Internet Tax Freedom Act (47 U.S.C. 151 note), as
amended by section 5, is amended by adding at the end the
following:

``SEC. 1108. TAXATION OF TELEPHONE SERVICE.

Section 1101(a) of the Internet Tax Freedom Act (47 U.S.C.
151 note) shall not apply to the imposition or collection of
any tax, fee, or charge on a service advertised or offered to
consumers for the provision of realtime voice
telecommunications regardless of whether such service employs
circuit-switched technology, packet switched technology, or
any successor technology or transmission protocol.

SEC. 7. EFFECTIVE DATE.

The amendments made by this Act take effect on November 1,
2003.

[[Page S4615]]

______

SA 3073. Mr. ALEXANDER submitted an amendment intended to be proposed
to amendment SA 3048 proposed by Mr. McCain to the bill S. 150, to make
permanent the moratorium on taxes on Internet access and multiple and
discriminatory taxes on electronic commerce imposed by the Internet Tax
Freedom Act; which was ordered to lie on the table; as follows:

In lieu of the matter proposed to be inserted, insert the
following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Internet Tax Ban Extension
and Improvement Act''.

SEC. 2. 2-YEAR EXTENSION OF MORATORIUM.

Section 1101 (a) of the Internet Tax Freedom Act (47 U.S.C.
151 nt) is amended--
(1) by striking ``2003--'' and inserting ``2005:'';
(2) by striking paragraph (1) and inserting the following:
``(1) Taxes on Internet access.''; and
(3) by striking ``multiple'' in paragraph (2) and inserting
``Multiple''.

SEC. 3. EXCEPTIONS FOR CERTAIN TAXES.

The Internet Tax Freedom Act (47 U.S.C. 151 note) is
amended--
(1) by redesignating section 1104 as section 1105; and
(2) by inserting after section 1103 the following:

``SEC. 1104. EXCEPTIONS FOR CERTAIN TAXES.

``(a) Pre-October, 1998, Taxes.--Section 1101(a) does not
apply to a tax on Internet access (as that term was defined
in section 1104(5) of this Act as that section was in effect
on the day before the date of enactment of the Internet Tax
Ban Extension and Improvement Act) that generally imposed and
actually enforced prior to October 1, 1998, if, before that
date, the tax was authorized by statute and either--
``(1) a provider of Internet access services had a
reasonable opportunity to know by virtue of a rule or other
public proclamation made by the appropriate administrative
agency of the State or political subdivision thereof, that
such agency has interpreted and applied such tax to Internet,
access services; or
``(2) a State or political subdivision thereof generally
collected such tax on charges for Internet access.
``(b) Taxes on Telecommunications Services.--Section
1101(a) does not apply to a tax on Internet access that was
generally imposed and actually enforced as of November 1,
2003, if, as of that date, the tax was authorized by statute
and either--
``(1) a provider of Internet access services had a
reasonable opportunity to know by virtue of a rule or other
public proclamation made by the appropriate administrative
agency of the State or political subdivision thereof, that
such agency has interpreted and applied such tax to Internet
access services; or
``(2) a State or political subdivision thereof generally
collected such tax on charges for Internet access service.''.

SEC. 4. CHANGE IN DEFINITIONS OF INTERNET ACCESS SERVICE.

(a) In General.--Paragraph (3)(D) of section 1101(e) of the
Internet Tax Freedom Act (47 U.S.C. 151 note) is amended by
striking the second sentence and inserting ``The term
`Internet access service' does not include telecommunications
services, except to the extent such services are purchased,
used, or sold by an Internet access provider to connect a
purchaser of Internet access to the Internet access
provider.''.
(b) Conforming Amendments.--
(1) Paragraph (2)(B)(i) of section 1105 of that Act, as
redesignated by subsection (a), is amended by striking
``except with respect, to a tax (on Internet access) that was
generally imposed and actually enforced prior to October 1,
1998,''.
(2) Internet access.--Paragraph (5) of section 1105 of that
Act, as redesignated by subsection (a), is amended by
striking the second sentence and inserting ``The term
`Internet access' does not include telecommunications
services, except to the extent such services are purchased,
used, or sold by an Internet access provider to connect a
purchaser of Internet access to the Internet access
provider.''.
(3) Paragraph (10) of section 1105 of that Act, as
redesignated by subsection (a), is amended to read as
follows:
``(10) Tax on internet access.
``(A) In general.--The term `tax on Internet access' means
a tax on Internet access, regardless of whether such tax is
imposed on a provider of Internet access or a buyer of
Internet access and regardless of the terminology used to
describe the tax.
``(B) General exception.--The term `tax on Internet access'
does not include a tax levied upon or measured by net income,
capital stock, net worth, or property value.''.

SEC. 5. ACCOUNTING RULE.

The Internet Tax Freedom Act (47 U.S.C. 151 note) is
amended by adding at the end the following:

``SEC. 1106. ACCOUNTING RULE.

``(a) In General.--If charges for Internet access are
aggregated with and not separately stated from charges for
telecommunications services or other charges that are subject
to taxation, then the charges for Internet access may be
subject to taxation unless the Internet access provider can
reasonably identify the charges for Internet access from its
books and records kept in the regular course of business.
``(b) Definitions.--In this section:
``(1) Charges for internet access.--The term `charges for
Internet access' means all charges for Internet access as
defined in section 1105(5).
``(2) Charges for telecommunications service.--The term
`charges for telecommunications services' means all charges
for telecommunications services except to the extent such
services are purchased, used, or sold by an Internet access
provider to connect a purchaser of Internet access to the
Internet access provider.''.

SEC. 6. EFFECT ON OTHER LAWS.

The Internet Tax Freedom Act (47 U.S.C. 151 note), as
amended by section 4, is amended by adding at the end the
following:

``SEC. 1107. EFFECT ON OTHER LAWS.

``(a) Universal Service.--Nothing in this Act shall prevent
the imposition or collection of any fees or charges used to
preserve and advance Federal universal service or similar
State programs--
``(1) authorized by section 254 of the Communications Act
of 1934 (47 U.S.C. 254); or
``(2) in effect on February 8, 1996.
``(b) 911 and E-911 Services.--Nothing in this Act shall
prevent the imposition or collection, on a service used for
access to 911 or E-911 services, of any fee or charge
specifically designated or presented as dedicated by a State
or political subdivision thereof for the support of 911 or E-
911 services if no portion of the revenue derived from such
fee or charge is obligated or expended for any purpose other
than support of 911 or E-911 services.
``(c) Non-Tax Regulatory Proceedings.--Nothing in this Act
shall be construed to affect any Federal or State regulatory
proceeding that is not related to taxation.''.

SEC. 7. EFFECTIVE DATE.

The amendments made by this Act take effect November 1,
2003.

SEC.   VOIP AND BROADBAND TELEPHONY EXCLUSION.

Section 1101(a) of the Internet Tax Freedom Act (47 U.S.C.
151 note) shall not apply to the imposition or collection of
any tax, fee, or charge on a service advertised or offered to
consumers for the provision of realtime voice
telecommunications regardless of whether such service employs
circuit-switched technology, packet switched technology, or
any successor technology or transmission protocol.
______

SA 3074. Mr. GRAHAM of Florida submitted an amendment intended to be
proposed to amendment SA 3048 proposed by Mr. McCain to the bill S.
150, to make permanent the moratorium on taxes on Internet access and
multiple and discriminatory taxes on electronic commerce imposed by the
Internet Tax Freedom Act; which was ordered to lie on the table; as
follows:

At the appropriate place, add the following:
Whereas the United States, its people and its armed forces,
are committed to winning the war on terrorism;
Whereas winning this global war will require a sustained
sacrifice from our troops, an expensive commitment of U.S.
resources, and effective and credible intelligence community,
and considerable cooperation of the international community;
Whereas winning this global war will also require that our
leaders correctly prioritize the national security threats
facing this nation, develop a plan for defeating those
threats, and urgently implement the measures required to
defeat those threats;
Whereas senior Bush Administration officials have
acknowledged that terrorism was not their top priority prior
to September 11, 2001, their strategy to counter this threat
took eight months to develop, and this strategy was not
implemented until after September 11, 2001.
Whereas Richard Clarke, President Bush's former senior
counter-terrorism advisor, has testified under oath that the
Bush Administration did not consider terrorism the top
priority and reports indicate that terrorism was discussed at
only two of the 100 meetings of the Bush Administration's
National Security Council prior to September 11, 2001;
Whereas Richard Clarke also testified that he provided Bush
Administration officials a memo on January 25, 2001 outlining
a counter-terrorism strategy and in September, 2001 the
Administration approved a counter-terrorism strategy that,
according to Clarke, was virtually identical to the strategy
outlined in his January memo;
Whereas the terrorist attacks of September 11, 2001, were
the deadliest ever directed against the United States and
there have been more terrorist attacks by al-Qaeda and
related groups in the 30 months since September 11, 2001 than
there were in the 30 months before September 11;
Whereas the Administration's policies have generated
growing hostility and resentment of the United States
throughout the Middle East and the world and majorities in
key Muslim countries have a more favorable opinion of Osama
Bin Laden than they do the United States;
Whereas the assessment by David Kay, the Administration's
chief weapons inspector, that there are no weapons of mass
destruction in Iraq has eroded the confidence of the American
people and the world in the assessment of our intelligence
community and our policymakers;
Whereas the bipartisan, bicameral joint congressional
inquiry into the intelligence

[[Page S4616]]

community's activities before and after September 11, 2001,
discovered many strengths and weaknesses within the community
pertaining to counter-terrorism;
Whereas many of the joint inquiry's testimony and documents
remain classified and inaccessible, including June 11, 2002
testimony by Richard Clarke and a twenty-eight page section
that addresses the involvement of a foreign government in
supporting several of the hijackers who carried out the
September 11 attacks;
Whereas Richard Clarke and the Majority and Minority
Leaders of the United States Senate have requested that
Clarke's June 11, 2002, testimony before the Joint Inquiry be
declassified; and
Whereas an Administration decision to selectively
declassify parts of documents or of individual documents will
not present to our troops and the American people the
complete information they need and deserve;
Now, therefore, be it
Resolved, that it is the sense of the Senate that--
(1) the June 11, 2002 testimony of Richard Clarke before
the joint inquiry should immediately be declassified and
publicly released in its entirety;
(2) the twenty-eight pages of the joint inquiry report
discussing foreign government involvement in the September 11
terrorist plot should be immediately declassified and
publicly released in their entirety, as well as any other
joint inquiry documents and testimony whose classification
can no longer be justified;
(3) the January 25, 2001 memorandum prepared by Richard
Clarke outlining a plan of action against the al-Qaeda
terrorist organization and the Bush Administration's
September 4, 2001 National Security Directive addressing
terrorism should be immediately declassified and publicly
released in their entirety; and
(4) the Bush Administration should immediately prepare and
publicly release a list of the dates and topics of all
National Security Council meetings that took place before
September 11, 2001.
______

SA 3075. Mr. HOLLINGS submitted an amendment intended to be proposed
by him to the bill S. 150, to make permanent the moratorium on taxes on
Internet access and multiple and discriminatory taxes on electronic
commerce imposed by the Internet Tax Freedom Act; which was ordered to
lie on the table; as follows:

At the appropriate place add the following:

TITLE --BROADBAND DEPLOYMENT

SEC.--01. SHORT TITLE; TABLE OF CONTENTS.

(a) Short title.--This title may be cited as the
``Broadband Telecommunications Deployment Act of 2004.''.
(b) Table of Contents.--
The table of contents for this title is as follows:

Sec. --01. Short title; table of contents.
Sec. --02. Findings.

Subtitle A--Trust Fund for Broadband Loans and Grants

Sec. --101. Broadband deployment trust fund.

Subtitle B--Access to Broadband Telecommunications Services in Rural
Areas

Sec. -- 201. Loan program.
Sec. -- 202. Grants for planning and feasibility studies on broadband
deployment.
Sec. -- 203. Pilot program for wireless or satellite broadband trials
in rural areas.
Sec. -- 204. Rural and underserved community broadband technology
initiative.
Sec. -- 205. Report on universal service and competition.
Sec. -- 206. Block grants to States for broadband deployment.
Sec. -- 207. GAO to study broadband deployment in other countries.
Sec. -- 208. Assessment of homeland security and public safety needs in
rural and underserved areas.

Subtitle C--Research on Technical and Financial Requirements for Faster
Broadband Services

Sec. -- 301. Research enhancement of broadband telecommunications
services.
Sec. -- 302. Grants to colleges and universities to research faster
broadband technology.

Subtitle D--Stimulating Demand for Broadband Services

Sec. -- 401. Grants to colleges and universities for research.
Sec. -- 402. Grants to libraries to digitize collections.
Sec. -- 403. Grants to museums to digitize collections.
Sec. -- 404. Grants for DTV conversion and programming.

SEC. --02. FINDINGS.

The Congress finds the following:
(1) Broadband service could revolutionize the way Americans
live. Therefore, it is important that Congress examine the
issues surrounding the availability and subscription to
broadband service.
(2) The Federal Communications Commission recently
concluded that advanced telecommunications capability is
being deployed in a reasonable and timely manner and that
although investment trends in general have slowed recently,
investment in infrastructure for advanced telecommunications
remains strong.
(3) Approximately 89 percent of Americans have access to
broadband service provided by either the cable or telephone
companies.
(4) Some communities, such as those in rural and urban
areas do not have access to broadband service.
(5) According to numerous reports approximately 21 percent
of consumers subscribe to broadband service, leading many to
believe that the low adoption of broadband by consumers is
not due to low availability, but instead to a lack of demand
by consumers.
(6) Cable and telephone companies generally provide
broadband service with speeds of up to 1.5 megabits per
second to residential consumers. How ever, many in the
technology industry state that higher speeds are needed to
provide telemedicine, video conferencing, movie and music
over the internet and other internet applications.
(7) The Federal Communications Commission's policies for
promoting broadband deployment must not undermine competition
or universal service.
(8) Congress must explore ways to ensure that broadband
service is available to all Americans and that no one is left
behind. This includes exploring ways to increase deployment
in unserved and underserved areas, address consumer demand
factors, facilitate innovation that results in higher service
speeds, and promote consumer confidence when using the
Internet.

Subtitle A--Trust Fund for Broadband Loans and Grants

SEC. --101. BROADBAND DEPLOYMENT TRUST FUND.

(a) In General.--The National Telecommunications and
Information Administration Organization Act is amended--
(1) by redesignating part C as part D; and
(2) by inserting after part B (47 U.S.C. 921 et seq.) the
following new part:

``Part C--Assistance To Promote Broadband Deployment and Demand

``SEC. 131. BROADBAND DEPLOYMENT AND DEMAND TRUST FUND.

``(a) Creation of Trust Fund.--There is established in the
Treasury of the United States a trust fund to be known as the
Broadband Deployment and Demand Trust Fund.
``(b) Expenditures From Trust Fund.--Amounts in the Trust
Fund shall be available for making expenditures to carry out
the provisions of the Broadband Telecommunications Deployment
Act of 2004, and for such expenditures as may be necessary to
administer the programs established therein.
``(c) Treatment as Trust Fund.--Subchapter B of chapter 98
of the Internal Revenue Code of 1986 shall apply to the
administration of the Trust Fund.

``SEC. 132. REGULATIONS.

``The Secretary of Commerce may prescribe such regulations
as may be necessary to carry out this part.

``SEC. 133. AUTHORIZATION OF APPROPRIATIONS.

``(a) Authorization.--For each of fiscal years 2005 through
2009 there are authorized to be appropriated to the Broadband
Deployment and Demand Trust Fund an amount equivalent to 50
percent of the taxes received in the Treasury after September
30, 2004, and before October 1, 2009, under section 4251
(relating to tax on communications) of the Internal Revenue
Code of 1986.
``(b) Sunset of Appropriations Stream.--The authorization
of appropriations by subsection (a) to the Trust Fund shall
terminate at the end of fiscal year 2009, but any balances
remaining in the Trust Fund at the close of that fiscal year,
and any repayments of loans made from the Trust Fund received
after fiscal year 2009, shall remain available for obligation
and expenditure from the Trust Fund.''.

Subtitle B--Access to Broadband Telecommunications Services in Rural
Areas

SEC. --201. LOAN PROGRAM.

(a) Purpose.--The purpose of this section is to provide
loans to fund the costs of the construction, improvement, and
acquisition of facilities and equipment for broadband service
in eligible rural and underserved communities.
(b) Definitions.--In this section:
(1) Broadband service.--The term ``broadband service''
means any technology identified by the National
Telecommunications and Information Administration, in
consultation with the Rural Utilities Service of the
Department of Agriculture, as having the capacity to transmit
data to enable a subscriber to the service to originate and
receive high-quality voice, high-speed data, graphics, or
video.
(2) Eligible rural community.--The term ``eligible rural
community'' means any incorporated or unincorporated place
that--
(A) has not more than 50,000 inhabitants, based on the most
recent available population statistics of the Bureau of the
Census; and
(B) is not located in an area designated as a standard
metropolitan statistical area.
(3) Eligible underserved community.--The term ``eligible
underserved community'' means any census tract located in--
(A) an empowerment zone or enterprise community designated
under section 1391 of the Internal Revenue Code of 1986;
(B) the District of Columbia Enterprise Zone established
under section 1400 of such Code;
(C) a renewal community designated under section 1400E of
such Code; or
(D) a low-income community designated under section 45D of
such Code.

[[Page S4617]]

(c) Loans.--
(1) In general.--The Rural Utilities Service, in
consultation with National Telecommunications and Information
Administration, shall make loans to eligible entities to
provide funds for the construction, improvement, or
acquisition of facilities and equipment for the provision of
broadband service in eligible rural and underserved
communities.
(2) Loans to lecs.--The Rural Utilities Service, in
consultation with National Telecommunications and Information
Administration, shall make loans to local exchange carriers
(as defined in section 3(26) of the Communications Act of
1934 (47 U.S.C. 151(26)) that are eligible entities to
provide funds to upgrade or install remote terminals located
more than 25,000 feet from the closest central office of the
local exchange carrier, and for the installation of fiber
optic cable or broadband wireless facilities between such
remote terminals and the closest central office of a local
exchange carrier, in order to provide broadband service to
eligible rural and underserved communities.
(3) Effect of communications policy.--Notwithstanding any
other provision of this section, the Rural Utilities Service
may not make a loan under this subsection if the National
Telecommunications and Information Administration determines
that the loan would have an adverse effect on communications
policy, including competition in the communications
marketplace.
(d) Eligible Entities.--To be eligible to obtain a loan
under this section, an entity shall--
(1) be able to furnish, improve, or extend a broadband
service to an eligible rural or underserved community; and
(2) submit to the Rural Utilities Service a proposal for a
project that meets the requirements of this section.
(e) Broadband service.--The National Telecommunications and
Information Administration shall, from time to time as
advances in technology warrant, re view and recommend
modifications to the rate-of-data transmission criteria for
purposes of the identification of broadband service
technologies under subsection (b) (1).
(f) Technological neutrality.--For purposes of determining
whether to make a loan for a project under this section, the
Rural Utilities Service shall apply technologically neutral
criteria and encourage the use of a variety of landline and
wireless technologies among applications.
(g) Terms and Conditions for Loans.--A loan under
subsection (d) shall--
(1) be made available in accordance with the requirements
of the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et
seq.);
(2) bear interest at an annual rate, as determined by the
National Telecommunications and Information Administration,
in consultation with the Rural Utilities Service, of--
(A) 4 percent per annum; or
(B) the current applicable market rate; and
(3) have a term not to exceed the useful life of the assets
constructed, improved, or acquired with the proceeds of the
loan or extension of credit.
(h) Use of Loan Proceeds to Refinance Loans for Deployment
of Broadband Service.--Notwithstanding any other provision of
this title, the proceeds of any loan made by the Rural
Utilities Service under this title may be used by the
recipient of the loan for the purpose of refinancing an
outstanding obligation of the recipient on another
telecommunications loan made under this title if the use of
the proceeds for that purpose will further the construction,
improvement, or acquisition of facilities and equipment for
the provision of broadband service in eligible rural and
underserved communities.
(i) Incumbent Local Exchange Carrier Must Make Upgraded
Facilities Available.--In addition to any other requirement
to provide unbundled network elements, any incumbent local
exchange carrier (as defined in section 251(h) of the
Communications Act of 1934 (47 U.S.C. 251(h))) that uses
funds made available under subsection (c)(2) shall make
remote terminals and fiber optic cable so funded, and any
loop that includes such components, available to a requesting
telecommunications carrier on an unbundled basis in
accordance with the requirements of sections 251 and 252
of the Communications Act of 1934 (47 U.S.C. 251, 252).
(j) Funding.--
(1) In general.--The Secretary of Commerce shall make
available from amounts in the Broadband Deployment and Demand
Trust Fund not more than $125,000,000 for each of fiscal
years 2005 through 2009 for loans under this section, of
which $25,000,000 shall be for loans under subsection (c)
(2).
(2) Value of loans outstanding.--The aggregate value of all
loans made under this section shall be at least
$2,500,000,000 for each such fiscal year, including not more
than $500,000,000 for outstanding loans under subsection
(c)(2).
(3) Allocation of funds.--
(A) In general.--From amounts made available for each
fiscal year under paragraph (1), the Rural Utilities Service
shall establish a national reserve for loans to eligible
entities in States under this section.
(B) Unobligated amounts.--Any amounts in the reserve
established for a State for a fiscal year under subparagraph
(A) that are not obligated by April 1 of the fiscal year
shall be available to the Rural Utilities Service to make
loans under this section to eligible entities in any State,
as determined by the Rural Utilities Service.

SEC. __202. GRANTS FOR PLANNING AND FEASIBILITY STUDIES ON
BROADBAND DEPLOYMENT.

(a) In General.--The National Telecommunications and
Information Administration shall make grants to non-profit
organizations for planning and feasibility studies on the
deployment of broadband services in different geographic
areas, including towns, cities, counties, and States.
(b) Eligibility Criteria.--
(1) In general.--The National Telecommunications and
Information Administration may establish additional criteria
for eligibility for grants under this section, including
criteria for the scope of the planning and feasibility
studies to be carried out with grants under this section.
(2) Contribution by grantee.--An organization may not be
awarded a grant under this section unless the entity agrees
to contribute (out of funds other than the grant amount) to
the planning and feasibility study to be funded by the grant
an amount equal to the amount of the grant.
(c) Application.--An organization seeking a grant under
this section shall submit an application for the grant to
National Telecommunications and Information Administration
that is in such form, and that contains such information, as
the National Telecommunications and Information
Administration shall require.
(d) Limitation on Use of Grant Amounts.--Grant amounts
under this section may not be used for the acquisition of
office equipment, the construction of buildings or other
facilities, the acquisition or improvement of existing
buildings or facilities, or the leasing of office space.
(e) Reservation of Funds for Grants.--
(1) In general.--The Secretary of Commerce shall make
available from amounts in the Broadband Deployment and Demand
Trust Fund not more than $60,000,000 for each of fiscal years
2005 through 2009 as a reserve for grants under this section.
(2) Release.--Funds reserved under paragraph (1) for a
fiscal year shall be reserved only until April 1 of the
fiscal year.
(f) Supplement Not Supplant.--
(1) In general.--Eligibility for a grant under this section
shall not affect eligibility for a grant or loan under
another section of this title.
(2) Considerations.--The National Telecommunications and
Information Administration may not take into account the
award of a grant under this section, or the award of a grant
or loan under another section of this title, in awarding a
grant or loan under this section or another section of this
title, as the case may be.
(g) Termination of Authority.--
(1) In general.--No grant may be made under this section
after September 30, 2009.
(2) Effect on validity of grant.--Notwithstanding paragraph
(1), any grant made under this section before the date
specified in paragraph (1) shall be valid.

SEC. __203. PILOT PROGRAM FOR WIRELESS OR SATELLITE BROADBAND
TRIALS IN RURAL AREAS.

(a) In General.--The National Telecommunications and
Information Administration shall support up to 7 pilot
programs in each of fiscal years 2005 through 2009 for
conducting innovative applications of wireless, satellite,
and other non-wireline technologies capable of delivering
broadband service (as defined in section __201(b)(1)) to an
eligible rural community (as defined in section __201(b)(2))
or an eligible underserved community (as defined in section
__201(b)(3)). The National Telecommunications and Information
Administration shall support 1 pilot program per year for
fiber-to-the-home technology under this subsection except for
any year for which no application is received for such a
program.
(b) Application Procedures and Conditions.--The National
Telecommunications and Information Administration shall
establish such application procedures and conditions for
grants under this section as it deems appropriate.
(c) Funding.--The Secretary of Commerce shall make
available from the Broadband Deployment and Demand Trust Fund
up to $2,000,000 per year for each pilot program under
subsection (a).

SEC. __204. RURAL AND UNDERSERVED COMMUNITY BROADBAND
TECHNOLOGY INITIATIVE.

The Director of the National Institute of Standards and
Technology, through the Advanced Technology Program, may hold
a portion of the Institute's competitions in thematic areas,
selected after consultation with industry, academics, and
other Federal Agencies, designed to develop and improve
technical capabilities with respect to the speed, quality,
and availability of technologies that will extend the reach
of broadband Internet services to individuals living in
eligible rural communities (as defined in section --
201(b)(2)) and eligible underserved communities (as
defined in section __201(b)(3)).

SEC. __205. REPORT ON UNIVERSAL SERVICE AND COMPETITION.

No later than May 1, 2005, a Federal-State Joint Board
established pursuant to section 410(c) of the Communications
Act of 1934 (47 U.S.C. 410(c)) and the National Exchange
Carriers Association shall report to the Federal
Communications Commission and to the Senate Committee on
Commerce, Science, and Transportation and the House of
Representatives Committee on Energy and Commerce on--
(1) the effect of reclassifying telecommunications services
provided by incumbent local exchange carriers on--

[[Page S4618]]

(A) the level of support available for universal service;
(B) the universal service contribution obligations of
telecommunications carriers and other providers of
telecommunications; and
(C) the ability of the Commission and State commissions to
fulfill the requirements of subsections (b), (h), and (i) of
section 254 of the Communications Act of 1934 (47 U.S.C.
254);
(2) the effect on universal service of--
(A) reducing the availability of network elements provided
by incumbent local exchange carriers;
(B) modifying the rates, terms, and conditions for the
purchasing or leasing of such elements; and
(C) reducing the oversight of the rates, charges, terms,
and conditions for the purchasing or leasing of
telecommunications services provided by such carriers; and
(3) the effect of such changes on competition in the
provision of telecommunications services.

SEC. --206. BLOCK GRANTS TO STATES FOR BROADBAND DEPLOYMENT.

(a) In General.--The Secretary of Commerce shall establish
a grant program to provide funding to State and local
governments to encourage and support the deployment of
broadband technologies and services, particularly in eligible
rural communities (as defined in section --201(b)(2)) and
eligible underserved communities (as defined in section --
201(b)(3)).
(b) Purposes.--State and local governments receiving grants
under this section shall use the funds--
(1) to spur investment in broadband facilities;
(2) to stimulate deployment of broadband technology and
services;
(3) to encourage the adoption of broadband in eligible
rural communities (as defined in section --201(b)(2)) and
eligible underserved communities (as defined in section --
201(b)(3)); and
(4) to provide e-government services through improved
access to government services through broadband Internet
connections.
(c) Applications.--To be eligible to receive a grant under
this section, a State or local government shall submit an
application to the Secretary at such time, in such manner,
and containing such information as the Secretary may require.
The Secretary shall establish a procedure for accepting,
processing, and evaluating applications and publish an
announcement of the procedure, including a statement
regarding the availability of funds, in the Federal Register.
(d) Funding.--The Secretary shall make available from
amounts in the Broadband Deployment and Demand Trust Fund
$1,000,000,000 for each of fiscal years 2005 through 2009 for
grants under this section, of which $250,000,000 shall be
made available for each such fiscal year for e-government
enhancement activities described in subsection (b)(4) in all
communities.

SEC. --207. GAO TO STUDY BROADBAND DEPLOYMENT IN OTHER
COUNTRIES.

The Comptroller General shall survey countries with
broadband deployment and subscriber rates that are similar
to, or greater than, the broadband deployment and subscriber
rates in the United States in order to determine the actions
governments, carriers, and other parties have taken to
facilitate the deployment of broadband (including the factors
that encourage consumers to subscribe to broadband service)
and report the results of his survey to the Congress by May
1, 2005.

SEC. --208. ASSESSMENT OF HOMELAND SECURITY AND PUBLIC SAFETY
NEEDS IN RURAL AND UNDERSERVED AREAS.

(a) In General.--No later than 6 months after the date of
enactment of this title, the National Telecommunications and
Information Administration shall issue a report on the
potential role of broadband in rural and underserved areas in
addressing homeland security and public safety needs, and, as
necessary, make recommendations to enhance deployment to
improve emergency response systems.
(b) Funding.--The Secretary of Commerce shall make
available from the Broadband Deployment and Demand Trust Fund
up to $500,000 for the study under subsection (a).

SUBTITLE C--RESEARCH ON TECHNICAL AND FINANCIAL REQUIREMENTS FOR FASTER
BROADBAND SERVICES

SEC. --301. RESEARCH ENHANCEMENT OF BROADBAND
TELECOMMUNICATIONS SERVICES.

(a) In General.--
(1) National science board research.--The Director of the
National Science Board, without considering any changes in
telecommunications regulation, shall research--
(A) technical changes that would be necessary with respect
to wireline, wireless facilities, and satellite facilities to
provide broadband telecommunications services in order to
provide speeds between 50 megabits-per-second and 100
megabits-per-second; and
(B) the financial cost of ensuring that all Americans have
access to broadband services with speeds between 50 megabits-
per-second and 100 megabits-per-second.
(2) ITS broadband research.--The Director of the Institute
of Telecommunications Sciences of the National
Telecommunications and Information Administration, in
consultation with the Director of the National Institute of
Science and Technology Laboratories, shall engage in research
and development--
(A) of wireline, wireless facilities, and satellite
facilities to provide broadband telecommunications services
in order to provide speeds between 50 megabits-per-second and
100 megabits-per-second;
(B) of new broadband technologies to meet government and
commercial needs; and
(C) with respect to the technical capabilities of existing
technologies to improve their speed, quality, and
availability and extend the reach of broadband services to
individuals living in rural areas.
(3) Spectrum-sharing and interference issues.--The Director
of the Institute of Telecommunications Sciences shall also
conduct research or studies--
(A) to enhance spectrum-sharing between governmental and
private sector users of broadband services;
(B) to develop technologies that would enable government
and private sector users to use spectrum more efficiently;
and
(C) to provide recommendations to the Administrator of the
National Telecommunications and Information Administration
that would enhance--
(i) government and private sector spectrum sharing
opportunities and coordination; and
(ii) private sector innovation of new wireless technologies
that benefit government and private sector users.
(b) Consultation and Coordination.--The Directors of the
National Science Board, the Institute of Telecommunications
Sciences, and the National Institute of Science and
Technology Laboratories shall--
(1) consult with governmental and commercial users of
broadband services as appropriate to facilitate research
under subsection (a); and
(2) consult with each other in order to coordinate their
activities under subsection (a).
(c) Results of Research.--The Director shall make available
to the public, in such manner as the Director considers
appropriate, the results of any research carried out under
this section.
(d) Funding.--The Secretary of Commerce shall make
available from amounts in the Broadband Deployment and Demand
Trust Fund for each of fiscal years 2005 through 2009 to
carry out this section not more than--
(1) $60,000,000 to the Director of the Institute of
Telecommunications Sciences of the National
Telecommunications and Information Administration, of which
not more than $10,000,000 shall be used to carry out
subsection (a)(2);
(2) $15,000,000 to the Director of the National Institute
of Science and Technology Laboratories; and
(3) $50,000,000 to the Director of the National Science
Board.

SEC. --302. GRANTS TO COLLEGES AND UNIVERSITIES TO RESEARCH
FASTER BROADBAND TECHNOLOGY.

(a) In General.--The Director of the National Science
Foundation shall establish and administer a grant program to
fund research at colleges and universities into advancing the
technical aspects of broadband technology in order to
provide speeds between 50 megabits-per-second and 100
megabits-per-second. In carrying out this subsection, the
Director shall ensure that grants are geographically
distributed nationwide.
(b) Funding.--The Secretary of Commerce shall make
available from amounts in the Broadband Deployment and Demand
Trust Fund not more than $50,000,000 for each of fiscal years
2005 through 2009 to the National Science Board for purposes
of activities under this section.

Subtitle D--Stimulating Demand for Broadband Services

SEC.--401. GRANTS TO COLLEGES AND UNIVERSITIES FOR RESEARCH.

(a) In General.--The National Telecommunications and
Information Administration shall establish and administer a
grant program to fund research at colleges and universities
to develop computer or Internet applications that require
broadband facilities and are of particular use to residential
consumers.
(b) Funding.--The Secretary of Commerce shall make
available from amounts in the Broadband Deployment and Demand
Trust Fund not more than $50,000,000 for each of fiscal years
2005 through 2009 for grants under this section.

SEC.--402. GRANTS TO LIBRARIES TO DIGITIZE COLLECTIONS.

(a) In General.--The National Telecommunications and
Information Administration shall establish and administer a
grant program for libraries to enable them to make a record
in digital format of their collections.
(b) Consultation With Knowledgeable Persons.--In making
grants under subsection (a), the National Telecommunications
and Information Administration shall consult with--
(1) the Librarian of Congress;
(2) the Archivist of the United States; and
(4) representatives of libraries, academic institutions,
and other individuals with professional responsibilities
related to collection, curation, preservation, and display of
books, records, films, and other written or recorded matter
of public interest.
(c) Funding.--The Secretary of Commerce shall make
available from amounts in the Broadband Deployment and Demand
Trust Fund not more than $100,000,000 for each of fiscal
years 2005 through 2009 for grants under this section.

SEC.--403. GRANTS TO MUSEUMS TO DIGITIZE COLLECTIONS.

(a) In General.--The National Telecommunications and
Information Administration shall establish and administer a

[[Page S4619]]

grant program for museums to enable them to make a record in
digital format of their collections.
(b) Consultation With Knowledgeable Persons.--In making
grants under subsection (a), the National Telecommunications
and Information Administration shall consult with--
(1) the Secretary of the Smithsonian Institution;
(2) the Chairman of the National Endowment for the Arts;
(3) the Chairman of the National Endowment for the
Humanities; and
(4) representatives of museums, academic institutions, and
other individuals with professional responsibilities related
to collection, curation, preservation, and display of objects
of significant public interest.
(c) Funding.--The Secretary of Commerce shall make
available from amounts in the Broadband Deployment and Demand
Trust Fund not more than $100,000,000 for each of fiscal
years 2005 through 2009 for grants under this section.

SEC.--404. GRANTS FOR DTV CONVERSION AND PROGRAMMING.

The Secretary of Commerce shall make available from amounts
in the Broadband Deployment and Demand Trust Fund not more
than $50,000,000 for each of fiscal years 2005 through 2009
to the National Telecommunications and Information
Administration for grants under the Public Telecommunications
Facilities Program for facility upgrades to transmit digital
television programming and to develop educational and public
interest digital programming.
______

SA 3076. Mr. GRAHAM of Florida submitted an amendment intended to be
proposed to amendment SA 3048 proposed by Mr. McCain to the bill S.
150, to make permanent the moratorium on taxes on Internet access and
multiple and discriminatory taxes on electronic commerce imposed by the
Internet Tax Freedom Act; which was ordered to lie on the table; as
follows:

At the appropriate place, add the following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Sales and Use Tax Fairness
Act''.

SEC. 2. FINDINGS.

The Congress finds that--
(1) the November 12, 2002, Streamlined Sales and Use Tax
Agreement establishes minimum requirements for a sales and
use tax system that simplifies and harmonizes State sales and
use tax laws and administrative procedures; and
(2) the Agreement, once implemented, will eliminate any
undue burden on interstate commerce associated with requiring
remote sellers to collect and remit sales and use taxes.

SEC. 3. SENSE OF THE CONGRESS.

It is the sense of the Congress that the sales and use tax
system established by the Streamlined Sales and Use Tax
Agreement provides sufficient simplification and uniformity
to warrant Federal authorization to States that are parties
to the Agreement to require remote sellers, subject to the
conditions provided in this Act, to collect and remit the
sales and use taxes of such States and of local taxing
jurisdictions of such States.

SEC. 4. AUTHORIZATION TO REQUIRE COLLECTION OF SALES AND USE
TAXES.

(a) Grant of Authority.--Once ten States comprising at
least twenty percent of the total population of all States
imposing a sales tax, as determined by the 2000 Federal
census, have petitioned for membership under the Streamlined
Sales and Use Tax Agreement in the manner required by the
Agreement, have been found to be in compliance with the
Agreement pursuant to the terms of the Agreement, and have
become Member States under the Agreement, any Member State
under the Agreement is authorized, notwithstanding any other
provision of law, to require all sellers not qualifying for
the small business exception provided under subsection (b) to
collect and remit sales and use taxes with respect to remote
sales to purchasers located in such State. Such authorization
shall terminate if the requirements of the preceding sentence
cease to be met. Such authorization shall also terminate for
any Member State if such Member State no longer complies with
the minimum requirements of the Agreement existing on
November 12, 2002, or if such requirements are no longer
complied with by ten States that otherwise meet the
requirements of this subsection. Determinations regarding
compliance with the requirements of this subsection shall be
made by the Governing Board (or, where provided by the
Agreement, the States petitioning for membership under the
Agreement) subject to the governance provisions of Section 5.
(b) Small Business Exception.--No seller shall be subject
to a requirement of any State to collect and remit sales and
use taxes with respect to a remote sale where the seller and
its affiliates collectively had gross sales nationwide of
less than $5,000,000 in the calendar year preceding the date
of such sale.
(c) Reasonable Seller Compensation.--The authority provided
in subsection (a) shall be conditioned on acceptance and
implementation by all Member States under the Agreement of a
requirement that such States provide reasonable and uniform
compensation for expenses incurred by sellers related to the
collection and remittance of the sales and use taxes of such
States.

SEC. 5. GOVERNANCE.

(a) Petition.--Any person who may be affected by the
Agreement may petition the Governing Board for a
determination on any issue relating to the implementation of
the Agreement.
(b) Review in Court of Federal Claims.--Any person who has
submitted a petition under subsection (a) may bring an action
against the Governing Board in the United States Court of
Federal Claims for judicial review of the action of the
Governing Board on that petition if--
(1) The petition related to (A) an issue of whether a State
has met or continues to meet the requirements for Member
State status under the Agreement, or (B) an issue of whether
the Governing Board has performed a non-discretionary duty of
the Governing Board under the Agreement; and
(2) The petition was denied by the Governing Board in whole
or in part with respect to that issue, or the Governing Board
failed to act on the petition with respect to that issue
within six months of the date on which the petition was
submitted.
(c) Timing of Action for Review.--An action for review
under this section shall be initiated within 60 days of the
Governing Board's denial of the petition as provided in
subsection (b), or, if the Governing Board failed to act on
the petition as provided in subsection (b), within 90 days
following the expiration of the six-month period following
the date on which the petition was submitted.
(d) Standard of Review.--In any action for review under
this section, the court shall set aside the actions,
findings, and conclusions of the Governing Board found to be
arbitrary, capricious, an abuse of discretion, or otherwise
not in accordance with law.
(e) Jurisdiction.--Chapter 91 of Title 28 of the United
States Code is amended by adding at the end thereof:

Sec. 1510. Jurisdiction regarding the Streamlined Sales and
Use Tax Agreement

The United States Court of Federal Claims shall have
exclusive jurisdiction over actions for judicial review of
determination of the Governing Board of the Streamlined Sales
and Use Tax Agreement under the terms and conditions provided
in section 5 of the Sales and Tax Fairness Act.

SEC. 6. LIMITATION.

(a) In General.--Nothing in this Act shall be construed as
subjecting sellers to franchise taxes, income taxes, or
licensing requirements of a State or political subdivision
thereof, nor shall anything in this Act be construed as
affecting the application of such taxes or requirements or
enlarging or reducing the authority of any State to impose
such taxes or requirements.
(b) No Effect on Nexus, Etc.--No obligation imposed by
virtue of the authority granted by section 4 of this Act
shall be considered in determining whether a seller has a
nexus with any State for any other tax purpose. Except as
provided in Section 4 of this Act, nothing in this Act
permits or prohibits a State--
(1) to license or regulate any person;
(2) to require any person to qualify to transact intrastate
business; or
(3) to subject any person to State taxes not related to the
sale of goods or services.

SEC. 7. DEFINITIONS.

For the purposes of this Act--
(1) Affiliate.--The term ``affiliate'' means any entity
that controls, is controlled by, or is under common control
with a seller.
(2) Governing board.--The term ``Governing Board'' means
the governing board established by the Streamlined Sales and
Use Tax Agreement.
(3) Member state.--The term ``Member State'' means a member
state under the Streamlined Sales and Use Tax Agreement.
(4) Person.--The term ``person'' means an individual,
trust, estate, fiduciary, partnership, corporation, or any
other legal entity, and includes a State or local government.
(5) Remote sale.--The terms ``remote sale'' and ``remote
seller'' refer to a sale of goods or services attributed to a
particular taxing jurisdiction with respect to which the
seller did not have adequate nexus under the law existing on
the day before the date of enactment of this Act to allow
such jurisdiction to require the seller to collect and remit
sales or use taxes with respect to such sale.
(6) State.--The term ``State'' means any State of the
United States of America and includes the District of
Columbia.
(7) Streamlined sales and use tax agreement.--The term
``Streamlined Sales and Use Tax Agreement'' (or ``the
Agreement'') means the multistate agreement with the title
adopted on November 12, 2002, and as amended from time to
time.
______

SA 3077. Mr. LAUTENBERG submitted an amendment intended to be
proposed by him to the bill S. 150, to make permanent the moratorium on
taxes on Internet access and multiple and discriminatory taxes on
electronic commerce imposed by the Internet Tax Freedom Act; which was
ordered to lie on the table; as follows:

At the appropriate place, insert the following:

[[Page S4620]]

SEC. __. GAO STUDY OF EFFECTS OF INTERNET TAX MORATORIUM ON
STATE AND LOCAL GOVERNMENTS AND ON BROADBAND
DEPLOYMENT.

The Comptroller General shall conduct a study of the impact
of the Internet tax moratorium, including its effects on the
revenues of State and local governments and on the deployment
and adoption of broadband technologies for Internet access
throughout the United States, including the impact of the
Internet Tax Freedom Act (47 U.S.C. 151 note) on build-out of
broadband technology resources in rural under served areas of
the country. The study shall compare deployment and adoption
rates in States that tax broadband Internet access service
with States that do not tax such service, and take into
account other factors to determine whether the Internet Tax
Freedom Act has had an impact on the deployment or adoption
of broadband Internet access services. The Comptroller
General shall report the findings, conclusions, and any
recommendations from the study to the Senate Committee on
Commerce, Science, and Transportation and the House of
Representatives Committee on Energy and Commerce no later
than November 1, 2005.

______

SA 3078. Mr. LAUTENBERG submitted an amendment intended to be
proposed to amendment SA 3048 proposed by Mr. McCain to the bill S.
150, to make permanent the moratorium on taxes on Internet access and
multiple and discriminatory taxes on electronic commerce imposed by the
Internet Tax Freedom Act; which was ordered to lie on the table; as
follows:

In lieu of the matter proposed to be inserted, insert the
following:

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Internet Tax
Nondiscrimination Act''.

SEC. 2. TWO-YEAR EXTENSION OF INTERNET TAX MORATORIUM.

(a) In General.--Subsection (a) of section 1101 of the
Internet Tax Freedom Act (47 U.S.C. 151 note) is amended to
read as follows:
``(a) Moratorium.--No State or political subdivision
thereof may impose any of the following taxes during the
period beginning November 1, 2003, and ending November 1,
2005:
``(1) Taxes on Internet access.
``(2) Multiple or discriminatory taxes on electronic
commerce.''.
(b) Conforming Amendments.--
(1) Section 1101 of the Internet Tax Freedom Act (47 U.S.C.
151 note) is amended by striking subsection (d) and
redesignating subsections (e) and (f) as subsections (d) and
(e), respectively.
(2) Section 1104(10) of the Internet Tax Freedom Act (47
U.S.C. 151 note) is amended to read as follows:
``(10) Tax on internet access.--
``(A) In general.--The term `tax on Internet access' means
a tax on Internet access, regardless of whether such tax is
imposed on a provider of Internet access or a buyer of
Internet access and regardless of the terminology used to
describe the tax.
``(B) General exception.--The term `tax on Internet access'
does not include a tax levied upon or measured by net income,
capital stock, net worth, or property value.''.
(3) Section 1104(2)(B)(i) of the Internet Tax Freedom Act
(47 U.S.C. 151 note) is amended by striking ``except with
respect to a tax (on Internet access) that was generally
imposed and actually enforced prior to October 1, 1998,''.
(c) Internet Access Service; Internet Access.--
(1) Internet access service.--Paragraph (3)(D) of section
1101(d) (as redesignated by subsection (b)(1) of this
section) of the Internet Tax Freedom Act (47 U.S.C. 151 note)
is amended by striking the second sentence and inserting
``The term `Internet access service' does not include
telecommunications services, except to the extent such
services are purchased, used, or sold by a provider of
Internet access to provide Internet access.''.
(2) Internet access.--Section 1104(5) of that Act is
amended by striking the second sentence and inserting ``The
term `Internet access' does not include telecommunications
services, except to the extent such services are purchased,
used, or sold by a provider of Internet access to provide
Internet access.''.

SEC. 3. GRANDFATHERING OF STATES THAT TAX INTERNET ACCESS.

The Internet Tax Freedom Act (47 U.S.C. 151 note) is
amended--
(1) by redesignating section 1104 as section 1105; and
(2) by inserting after section 1103 the following:

``SEC. 1104. GRANDFATHERING OF STATES THAT TAX INTERNET
ACCESS.

``(a) Pre-October 1998 Taxes.--
``(1) In general.--Section 1101(a) does not apply to a tag
on Internet access that was generally imposed and actually
enforced prior to October 1, 1998, if, before that date, the
tax was authorized by statute and either--
``(A) a provider of Internet access services had a
reasonable opportunity to know, by virtue of a rule or other
public proclamation made by the appropriate administrative
agency of the State or political subdivision thereof, that
such agency has interpreted and applied such tax to Internet
access services; or
``(B) a State or political subdivision thereof generally
collected such tax on charges for Internet access.
``(2) Termination.--This subsection shall not apply after
November 1, 2005.
``(b) Pre-November 2003 Taxes.--
``(1) In general.--Section 1101(a) does not apply to a tax
on Internet access that was generally imposed and actually
enforced as of November 1, 2003, if, as of that date, the tax
was authorized by statute and--
``(A) a provider of Internet access services had a
reasonable opportunity to know by virtue of a public rule or
other public proclamation made by the appropriate
administrative agency of the State or political subdivision
thereof, that such agency has interpreted and applied such
tax to Internet access services; and
``(B) a State or political subdivision thereof generally
collected such tax on charges for Internet access.
``(2) Termination.--This subsection shall not apply after
November 1, 2005.''.

SEC. 4. ACCOUNTING RULE.

The Internet Tax Freedom Act (47 U.S.C. 151 note) is
amended by adding at the end the following:

``SEC. 1106. ACCOUNTING RULE.

``(a) In General.--If charges for Internet access are
aggregated with and not separately stated from charges for
telecommunications services or other charges that are subject
to taxation, then the charges for Internet access may be
subject to taxation unless the Internet access provider can
reasonably identify the charges for Internet access from its
books and records kept in the regular course of business.
``(b) Definitions.--In this section:
``(1) Charges for internet access.--The term `charges for
Internet access' means all charges for Internet access as
defined in section 1105(5).
``(2) Charges for telecommunications services.--The term
`charges for telecommunications services' means all charges
for telecommunications services, except to the extent such
services are purchased, used, or sold by a provider of
Internet access to provide Internet access.''.

SEC. 5. EFFECT ON OTHER LAWS.

The Internet Tax Freedom Act (47 U.S.C. 151 note), as
amended by section 4, is amended by adding at the end the
following:

``SEC. 1107. EFFECT ON OTHER LAWS.

``(a) Universal Service.--Nothing in this Act shall prevent
the imposition or collection of any fees or charges used to
preserve and advance Federal universal service or similar
State programs--
``(1) authorized by section 254 of the Communications Act
of 1934 (47 U.S.C. 254); or
``(2) in effect on February 8, 1996.
``(b) 911 and E-911 Services.--Nothing in this Act shall
prevent the imposition or collection, on a service used for
access to 911 or E-911 services, of any fee or charge
specifically designated or presented as dedicated by a State
or political subdivision thereof for the support of 911 or E-
911 services if no portion of the revenue derived from such
fee or charge is obligated or expended for any purpose other
than support of 911 or E-911 services.
``(c) Non-Tax Regulatory Proceedings.--Nothing in this Act
shall be construed to affect any Federal or State regulatory
proceeding that is not related to taxation.''.

SEC. 6. EXCEPTION FOR VOICE AND OTHER SERVICES OVER THE
INTERNET.

The Internet Tax Freedom Act (47 U.S.C. 151 note), as
amended by section 5, is amended by adding at the end the
following:

``SEC. 1108. EXCEPTION FOR VOICE AND OTHER SERVICES OVER THE
INTERNET.

``Nothing in this Act shall be construed to affect the
imposition of tax on a charge for voice or any other service
utilizing Internet Protocol or any successor protocol. This
section shall not apply to Internet access or to any services
that are incidental to Internet access, such as e-mail, text
instant messaging, and instant messaging with voice
capability.''.

SEC. 7. EFFECTIVE DATE.

The amendments made by this Act take effect on November 1,
2003.
______

SA 3079. Mr. GRAHAM of Florida submitted an amendment intended to be
proposed to amendment SA 3048 proposed by Mr. McCain to the bill S.
150, to make permanent the moratorium on taxes on Internet access and
multiple and discriminatory taxes on electronic commerce imposed by the
Internet Tax Freedom Act; which was ordered to lie on the table; as
follows:

At the appropriate place in Amdt. No. 3048, insert the
following:

SEC. __. SENSE OF THE SENATE.

(a) Findings.--The Senate finds that the Unfunded Mandates
Reform Act of 1995 (P.L. 104-4) was passed--
(1) ``to end the imposition, in the absence of full
consideration by Congress, of Federal mandates on State,
local, and tribal governments without adequate Federal
funding, in a manner that may displace other essential State,
local, and tribal governmental priorities'';
(2) to provide ``for the development of information about
the nature and size of mandates in proposed legislation'';
(3) ``to establish a point-of-order vote on the
consideration in the Senate and House of Representatives of
legislation containing significant Federal intergovernmental
mandates without providing adequate funding to comply with
such mandates'';

[[Page S4621]]

(4) to require that ``Federal agencies prepare and consider
better estimates of the budgetary impact of regulations
containing Federal mandates upon State, local, and tribal
governments before adopting such regulations, and ensuring
that small governments are given special consideration in
that process''; and
(5) to establish the general rule that Congress shall not
impose Federal mandates on State, local, and tribal
governments without providing adequate funding to comply with
such mandates.
(b) Sense of the Senate.--It is the sense of the Senate
that--
(1) the Unfunded Mandates Reform Act of 1995 constituted an
important pledge on the part of the Federal Government, in
general, and Congress, in particular, to refrain from
imposing Federal mandates on State, local, and tribal
governments without providing adequate resources to
compensate State, local, and tribal governments for the cost
of complying with such mandates;
(2) at this time when State, local, and tribal governments
are struggling to cope with the worst State and local fiscal
crisis since World War II, it is urgently important that
Congress adhere to its commitments under the Unfunded
Mandates Reform Act of 1995; and
(3) Congress should not pass laws mandating that States or
localities spend new money or forgo collecting currently
collected revenues, unless Congress--
(A) has clear and precise estimates of the budgetary
impacts of such mandates upon States, local governments, and
tribal governments; and
(B) provides adequate funding to cover the cost to States
and localities of complying with such mandates.
______

SA 3080. Mr. ENZI submitted an amendment intended to be proposed by
him to the bill S. 150, to make permanent the moratorium on taxes on
Internet access and multiple and discriminatory taxes on electronic
commerce imposed by the Internet Tax Freedom Act; which was ordered to
lie on the table; as follows:

In lieu of the matter proposed to be inserted, insert the
following:

SECTION 1. EXTENSION OF THE INTERNET TAX FREEDOM ACT.

Section 1101(a) of the Internet Tax Freedom Act (47 U.S.C.
151 note) is amended by striking ``November 1, 2003'' and
inserting ``May 31, 2005''.
______

SA 3081. Mr. ENZI submitted an amendment intended to be proposed by
him to the bill S. 150, to make permanent the moratorium on taxes on
Internet access and multiple and discriminatory taxes on electronic
commerce imposed by the Internet Tax Freedom Act; which was ordered to
lie on the table; as follows:

Strike all after the first word and insert the following:

1. EXTENSION OF THE INTERNET TAX FREEDOM ACT.

Section 1101(a) of the Internet Tax Freedom Act (47 U.S.C.
151 note) is amended by striking ``November 1, 2003'' and
inserting ``June 1, 2005''.
______

SA 3082. Mr. LOTT submitted an amendment intended to be proposed to
amendment SA 3048 proposed by Mr. McCain to the bill S. 150, to make
permanent the moratorium on taxes on Internet access and multiple and
discriminatory taxes on electronic commerce imposed by the Internet Tax
Freedom Act; which was ordered to lie on the table; as follows:

On page 5, line 2, strike ``2006'' and insert ``2007''.

____________________